$DG | Dollar General: Structure Trade [Update]Updated structure trade. Watch for a breakout of the bull flag.
DGEN trade ideas
DG Bounce thoughts I'm looking at opening a long position in Dollar General. It currently seems fairly valued and may have limited downside potential and has had a strong steady upside trend in the long term. My current thinking is that money is moving around between stocks to shake out some gains as money flows out of stocks that have done well through the pandemic and into beaten-down stocks. These small drops are creating good solid long term buying points though. I think despite a vaccine there is still a good reason to be in stocks that did well throughout the year because we aren't out of the woods yet thus they appear to be range bound and consolidating. I went in on HD last week with 15% of my portfolio and am looking at doing between 10-15% with DG as well depending on how Monday and Tuesday shape up. I am watching out for three possible scenarios.
The first is a bounce back up from the current price. The price action did dip below the close price of the previous two drops lately and has hung out there showing some weakness but held on Friday. This puts the price roughly along a May 2020 lower trend line and the 100 day SMA. Worth noting there was a three-day fight to hold the 50 SMA which ultimately failed. The first bounce back at this same price point was at the 50 SMA.
The second option is the price drops below my May 2020 lower trend line to the price of the heavier volume days of September when the gains attempted to stall out before bouncing back.
If neither of those happens and I have opened a position I will reduce my position in half around $201 hopefully finding support around $192 to buy back in. This is the third option. I see this less likely as Dollar type stores typically thrive in these economic environments.
My intent on the sell-side would be to start reducing by 1/3 at $221 which is the Dec 1st high. Reduce by another 1/3 which is the late October and Early November high. If all of that succeeds and the stock breaks out then hold until the average upper trend line starting in April 2020 around the $230 price point. If there is a break out it could be worth letting it ride with a $6 stop loss if the price crosses $226.
Feel free to let me know any thoughts people have on this.
$DG with a neutral outlook following earning releaseThe PEAD projected a neutral outlook for $DG after negative under reaction following its earning release placing the stock in Drift D
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$DG- I love this long, but is now the right time?$DG has generated alot of cash for me and for options contract buyers its a great long exp buy. Obviously Equity buyers included in this. Right now we are sitting at a major resistance , and if we break my first PT would be $225.35. After that we are working through ATMs but thats how stocks work at ATM. you never know. One thing to watch is $SPY . $DG moves along side $SPY and if we break to the downside I will be watching for a divergence from SPY to see If the pullback is real or not. If DG hovers while SPY dumps then when the market bounces it should present a nice buying opportunity. I will be signaling these in our group this week, and hopefully posting some more videos on these tickers in particular. So right now I am hoping for a gap up, over resistance and then a retest to send us on our way. ATM highs can be scary, but if the volume is higher then we could see a nice push! Thanks for listening!
Cup and handleAs a rule a C&H pattern will max out at 167% of cup depth
I do not see another pattern yet above the C&H
This one is getting closer to 167% and has passed most of the other targets
Small pull backs from time to time but always seems to recover
How high can she go?
Broke up from an A triangle at 196ish so support could be here
Possible stop below 190
NV just keeps going higher
Not a recommendation
