Downside in Dollar General?
Discount retailers like Dollar General have struggled all year. Now, after a drop and rebound, sellers may return to the name.
The first pattern on today’s chart is the series of lower highs since May, which have produced a falling trendline. DG is now back at this line. Will the downtrend reassert itself?
Prices are also near the 50-day simple moving average.
Third, stochastics are dipping from an overbought condition.
Finally, consider the high-volume sessions on June 1, August 31 and October 13. The first two were bearish gaps after results and guidance missed estimates. The second was a countertrend bounce after Todd Vasos returned as CEO. While he may engineer a turnaround over the longer-term, the weak fundamentals and bearish momentum could remain dominant into yearend.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
The first pattern on today’s chart is the series of lower highs since May, which have produced a falling trendline. DG is now back at this line. Will the downtrend reassert itself?
Prices are also near the 50-day simple moving average.
Third, stochastics are dipping from an overbought condition.
Finally, consider the high-volume sessions on June 1, August 31 and October 13. The first two were bearish gaps after results and guidance missed estimates. The second was a countertrend bounce after Todd Vasos returned as CEO. While he may engineer a turnaround over the longer-term, the weak fundamentals and bearish momentum could remain dominant into yearend.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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