Dollar General (DG) is setup on all time frames, with the stock popping above its 50d moving average on Tuesday, closing at $238.97.
Most stocks in the discount retail group closed higher, which helps confirm a potential buying opportunity for new entries.
Dollar General (DG) cleared its 200d moving average 17 days ago, closing above the 9/21 exponential moving averages and 50d moving averages to start the week. Volume was slightly above average as price action nears a MarketSmith defined breakout pivot at 239.97 (blue shading).
Momentum oscillators are bullish with room to run. RS line is printing higher highs as well.
Dollar General’s 15 minute and 60 minute charts are bullish, with momentum oscillators all pointing to increasing bullish pressure. Watch for a break higher.
The US equity markets attempted a rally posting a strong session on Tuesday. That said, the most we are looking for is a dead cat bounce.
Additional stocks are showing relative strength as the US equity markets attempt a new rally.
Cheniere Energy (LNG), Exxon Mobil (XOM), Eli Lilly (LLY), Dollar General (DG), Tesla(TSLA) rival Li Auto (LI), UnitedHealth (UNH) and Northrop Grumman (NOC) showed strong positive action, with relative strength lines at or near highs. – Investors Business Daily
Despite the strength on Tuesday, the most we are looking for is a dead cat bounce.