Here are two stocks that might be recession proof. $DG $DLTR – June 21, 2022DLTR DG
This is Scott with your Chart of the Day. I want to show you two charts right now. I don’t know that they are actionable right here right now but I definitely think we should keep an eye on them, especially if the recession narrative continues to take hold like it seems to be now. That’s what people are now warning about, oh well, we’re probably going into a recession. And even members of the Fed are coming out saying, we might go into a recession but typically those are short-lived.
I think if we do go into a recession we are going to want to watch the dollar stores because I remember the last recession and I am pretty sure dollar stores became more popular when everyone was trying to save money like they are right now. In fact, in Canada, I vividly remember everything being $1.00. And now at some dollar stores, they have things that are $2, $3, and even $5.00, so inflation has hit the dollar stores. But I still think that they are worth watching in this market.
So let’s keep an eye on DLTR ( NASDAQ: DLTR ), which is Dollar Tree ( NASDAQ: DLTR ),. Now, this chart is sloppy, this is a real mess here. There are gaps all over the place, the stock is currently under the 50-day moving average. But I think if it can base and consolidate around the 50-day moving average, and maybe take out that level right there around 166.00 that would really kind of clean things up here for DLTR ( NASDAQ: DLTR ).
Dollar General ( NYSE: DG ) had a monster move today right off the 50-day moving average. Now, the only downside of this is the daily volume. Look at this, it is less than average daily volume, so not a conviction here in this move. Though again, I think you want to see it get above and stay above that 240.00 level. Look how important it was back here, back here, and it is important again.
So this is a stock that I think you want to watch for a move through 240.00 coming on higher than average volume. In the meantime, it may just kind of chop around, and again, base around the 50-day, that wouldn’t be bad. But I think that the $240.00 level seems key here on Dollar General ( NYSE: DG ).
I hope you are staying safe in this market., there are a lot of cross-currents. It seems like every day something else is happening but hopefully you are staying safe.