Dollar General “weekly” Stock Chart – NYSE: DG
On 3/31/20, Wells Fargo upgraded Dollar General (DG) from equal-weight to overweight and set a $175 price target.
Wells Fargo believes the new government stimulus plan will likely be a key sales driver for the company through Q2 and beyond.
Given this background, let’s see what the chart tells us.
At askSlim, I use technical analysis to evaluate price charts of stocks, futures, and ETF’s. I use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.
askSlim Technical Briefing:
The weekly cycle analysis suggests that DG is still early in a rising phase. Weekly momentum remains negative.
On the upside, there is an intermediate-term resistance zone from 158.36 – 167.44. On the downside, there is an intermediate-term support zone from 135.02 – 125.00. Our analysis suggests that for the bulls to regain control of the intermediate-term, I would likely need to see a breakout above the all-time-high at 167.44.
askSlim Sum of the Evidence:
DG is in the early stages of a rising phase with negative weekly momentum. Given these conditions, we would expect any upside to be limited to the intermediate resistance beginning at 158.36. I would expect this rally to fail at resistance and get more selling pressure down to 135 by the end of July.
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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.