Scott thinks $DG is worth a watch – November 21, 2022DG
This is Scott with your Chart of the Day. A really quick one here from Dollar General ( NYSE: DG ).
I have been thinking about inflation and the holiday season coming up. Not too many people are looking to spend a lot of money this holiday season, so what stores are going to benefit from that? And I tend to think Dollar General ( NYSE: DG ) is going to be in line tor that as people look for ways to save money shopping at the Dollar Store ( NYSE: DG ).
And so it just happens that DG ( NYSE: DG ) here, is near a pretty clear level of resistance. If I zoom out you can see this previous high from back in March. Right over here, we, so far, haven’t even been able to get even above that level. We have come close, pull back, come close, pull back. This recent pullback was a little faster than the other one.
Back here it pulled back and then held that for a couple of months, and this time it pulled back right to the 50-day and then right back to this level of resistance. And so I definitely think it is worth watching, I am going to set an alert on my software here right around that 261.50 zone and look for a strong move through that level coming on volume.
And so I want to see it push through, close above, and look for that volume to confirm that this move is actually real. Because as you may have seen, breakouts in this market are a little tough to come by. That’s the setup that we are looking at here for DG ( NYSE: DG ).