Downside in Dollar General?

2023년 11월 1일

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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