Dollar Tree Inc Gets Chopped Down, Watch This Trade Level
Leading discount retailer, Dollar Tree Inc (DLTR), sold off last week after reporting earnings. The stock dropped by over 12% after failing to impress Wall Street investors. The company guided EPS below consensus for Q3 and FY22. The stock is now trading below its important 50 and 200-day moving averages. This puts the stock in a weak technical position on the charts and should signal further downside in the near term.
The next major support level for Dollar Tree Inc (DLTR) stock should be around the $84.00 level. This support area is where the stock broke out back in May 2020. This key level was also defended in September 2020 before the stock surged to new all time highs. This tells me that this is where the institutional crowd will most likely support the stock. There is also a major retrace level just below this major support area around $83.00. This should increase the strength of the support level when tested. I will be a buyer of the discount trailer at this major support area.
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