Dillard’s Nails Earnings But Market Cycles May Reward Patience

Trader, Analyst, Mentor with 50 years experience in the financial markets - Host askSlim • Feb 27, 2018 at 11:45 AM EST

Dillard’s stock is currently near significant resistance. It may be over-extended. I expect a pullback into April, below $75, that could prove to be a buying opportunity.

Dillard’s (DDS ) opened today’s trading session in spectacular fashion, popping 16% to over $82 on strong earnings.

DDS reported adjusted earnings per share of $2.82 and total revenue of $2.06 billion, compared to Wall Street expectations of $1.82 and $2.05 billion respectively. This was achieved by strong performance in same-store sales of 3% as well as ladies, juniors, and children’s apparel.

Dillard’s stock is currently near significant resistance. It may be over-extended. I expect a pullback into April, below $75, that could prove to be a buying opportunity. The market cycles are designated by the purple semicircles at the bottom of the chart.

Dillard's (DDS) Chart with Weekly Bars

(Click on image to enlarge)

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