Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Dollar Tree (NASDAQ: DLTR) DLTR share price showed selling pressure and has persisted in slipping the gains post release of Q2 earnings in the past weeks. However, the Q2 earnings were somewhat mixed, where the net income fell by 44.32% to $200.40 Million (YoY) and the total revenue increased by 8.23% to $7.33 Billion (YoY). DLTR stock price has splitted the crucial support zone of $125 and sellers aggressively smashed the zone decisively. Afterward, DLTR stock did not manage to hold the trajectory swing of $120 and slow & steady losing the gains indicating seller dominance on the charts. Moreover, the chart structure was destroyed and did not bounce amid the major breakdown.
DLTR stock reflects negative sentiments and investors stayed cautious and started unwinding their long positions because of the consecutive selling in the stock. Furthermore, the technicals indicate that DLTR stock has taken a pause near $102 and retested the 20 day EMA. However, a rejection candlestick was formed near the 20 day EMA which indicates that bulls do not have enough strength to surpass and follow on selling pressure will continue in the next sessions. As per the options chain, at the strike price of $100, a massive open interest of 1206 hundred shares on the put side shows the strong support zone, whereas at the strike price of $110, a massive open interest of 1532 hundred shares on the call side shows strong resistance zone.
At press time, DLTR stock price was trading at $107.94 with an intraday gain of 0.44%, showing neutrality on the charts. Moreover, the intraday trading volume increased by 0.55% to 2.78 Million and the market cap is $23.747 Billion. However, analysts have maintained a buy rating with a yearly target price of $150 suggesting a growth outlook for the next sessions.
Dollar Tree, Inc. owns and operates discount variety stores offering merchandise at fixed prices. It operates through the Dollar Tree and Family Dollar segments. The Dollar Tree segment includes operations under Dollar Tree and Dollar Tree Canada brands, with its distribution centers in the United States and Canada.
Will DLTR Stock Hold $100 or Crack the Cluster?
On the daily charts, DLTR stock price was close to the round mark of $100 and witnessed selling pressure in the past sessions. Furthermore, the price action shows the short buildup and DLTR share price has persisted in dragging the gains and buyers are losing the momentum. Moreover, the DLTR stock price has dragged below the 23.6% Fib level shows oversold indication.
The RSI curve shows a pullback from the oversold region and shows a positive crossover indicates that buyers are attempting to surpass the 20 day EMA hurdle to initiate a reversal.
The MACD indicator showed a bullish crossover and formed green bars on the histogram indicating the buyers efforts to regain the strength in the last trading sessions.
Summary
Dollar Tree (DLTR stock) price is training below the neutrality and is showing selling pressure for the past trading sessions. Moreover, the price action shows that sellers may crack the immediate support zone of $100 and may retest the swing of $95 in the next sessions. Furthermore, the DLTR share will continue to break down. Follow-on selling may persist in the next sessions.
Technical Levels
Support Levels: $100 and $95
Resistance Levels: $110 and $115
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/14/dltr-stock-nasdaq-dltr-continues-to-slip-will-dltr-hold-100/