DG BJ 

This is Scott with your Chart of the Day. I actually have two charts that I think are worth adding to your watch list this weekend.

The first one is Dollar General ( NYSE: DG ). You can see Dollar General ( NYSE: DG ) had quite a fall from grace, here in April, all the way down to that 184.00 zone but retraced the move and is now consolidating near the highs.

The second stock I want to show you is BJ’s Wholesale Club ( NYSE: BJ ). The same kind of thing, look at this, from April down to the lows, retraced the move and is back to the highs. And so these stocks are set up, in my opinion, pretty nicely for potentially a retest of the highs.

On Dollar General ( NYSE: DG ) we are above all the major moving averages here. I told members today, at stockmarketmentor.com, that today maybe you could take a starter position along these moving averages as long as the stock holds above that 21-day EMA.

But I think the real move will come with a break out above that 256.50 level. And so I am going to set an alert on Dollar General ( NYSE: DG ) right below 256.50. And I will look for a strong move on volume through that level.

The same kind of setup here on BJ’s ( NYSE: BJ ). Some of us over at stockmarketmentor.com took a position either yesterday or today in BJ’s ( NYSE: BJ ) because it has the same chart pattern, it is consolidating near some highs.

Today BJ’s ( NYSE: BJ ) had a really nice move off of that daily 8 exponential period moving average and I don’t think it is too late to get involved if we get a strong move through 71.26 coming on volume.

Now, earlier this week I did talk about BJ’s ( NYSE: BJ ) as a potential setup to watch. And now I think it is primed for a breakout if we can get above and stay above, and do it on volume.

SHLS SEDG FLSR ENPH 

This is Scott with your Chart of the Day. I want to keep an eye on a solar stock that is kind of lesser-known ( NASDAQ: SHLS ). When you think of solar stocks you probably think of SolarEdge ( NASDAQ: SEDG ). You probably think of First Solar ( NASDAQ: FSLR ). You probably think of Endphase ( NASDAQ: ENPH ), these are the solar stocks that come to mind.

But I think Shoals ( NASDAQ: SHLS ) is definitely one that you should keep an eye on as well. Because from what I understand, everyone who is in the solar sector, every company, uses parts from this company. So as long as those companies are getting orders, this company is getting orders.

That is just kind of a brief overview, I won’t go too deep into it, but it is looking pretty good here. As you can see on the chart it is above all the major moving averages and in an uptrend. You can see how it consolidated around these clusters of moving averages for a while. It popped up above, did it on good volume, and so far has been consolidating this move just going sideways around that daily 8-exponential period moving average.

This is a nice kind of consultative base that you want to see after a stock makes a big move like this. I think is definitely worth watching. You could probably even take a small position with a stop either around that 21.18 level or even down here at around 21-20, you know, based on your risk tolerance. And as long as it is able to hold above that 8-exponential period moving average I think you are okay.

On the weekly chart here, you can see it’s above the weekly 50-period simple moving average and coming close to a previous weekly high here. So it looks good on the weekly, it looks good on the daily, and it is definitely one that I think you should keep on a watch list because not a lot of people know it and it is in a pretty strong sector right now.

BJ 

This is Scott with your Chart of the Day. I want to show you a level that I think is pretty key on BJ’s Wholesale Club Holdings ( NYSE: BJ ). This is evidently in the discount store sector, and I think that this level at around 71.33 is pretty important.

If I zoom out you can see why because back here in November BJ ( NYSE: BJ ) had a big move up on higher than average volume and then kind of fell back into the moving averages. Ever since this day here, it has been unable to get back above that clear 71.30 zone. It tried, tried, tried, tried, tried over and over, but it can’t do it.

I think it is worth having an alert on BJ ( NYSE: BJ ) at around 71.30, and take a look at it. Now, you could potentially start a small started position right here as it hangs around the 8 and the 21-day exponential period moving averages. In that case, you would probably want to have a stop right around that 66.00 level.

So you are small but you have a wide stop and you are sitting through the gyration, sitting through the consolidation, and then adding with a move through and a close above this clear level, coming on higher than average volume. I think it makes sense to have an alert right around that level.

Keep in mind that they do have earnings coming up on the 18th. So if you are starting a small position and it doesn’t break out I would probably want to end up selling that position because I don’t know about you but I don’t like to hold anything into earnings unless I have like a good 20 percent cushion or anything like that.

So that would be my thought here on BJ ( NYSE: BJ ). I think it is worth keeping an eye on as it is still in a decent uptrend and near some key moving averages.