Sunday, April 19, 2009

Dollars hanging low on the tree? (DLTR)

There seems to be decent support at $42 the failed breakout above is ominous. $45 is where the 2007 top was so there's good reason to think that the Dollar Tree's (DLTR) strength may be ending. I like how the 50 dma is inching towards a 200 dma cross over (cross of death) and also how the stochastics and CCI are giving sell signals. This stock is in the IBD 100 so if it starts to roll it may roll hard. I'd expect the 50 and 200 dmas to act like support but once those break the lower $30s are in store. Once/If the cross of death occurs we can start talking about a long term reversal here.

Disclosure: I own DLTR puts

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