Dicks Is Drifting Before the Holidays

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Dicks Sporting Goods began the year with a breakout to new highs. Now, after a long period of consolidation, some traders may see potential for another push to the upside.

The first pattern on today’s chart is the rally in the first quarter, plus two bullish earnings gaps. Results also beat estimates in September but the stock failed to advance. Those patterns may reflect positive fundamentals as attention focused elsewhere.

Next, the retailer has spent seven months above its peaks from 2021 and 2023. Has new support been established above old highs?

Third is the September low of $202.35. DKS tested and held this level in October. That could suggest another new support area has emerged at an even higher location.

Fourth, prices have remained above the rising 200-day simple moving average (SMA). They’re also near the 50-day SMA. Both of those points are potentially consistent with positive trends over the long- and intermediate terms.

DKS ended Friday by pushing above a falling trendline. It also had the highest close since September 4. Traders may view these points as early signs of a potential breakout.

Finally, U.S. retail sales beat estimates last week for the fourth straight month and the holiday-shopping season is coming into view. Investors may like that bigger picture for DKS.

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