Dollar Tree (DLTR Stock) Price Drags to $100 Amid Negative Cues
Dollar Tree (DLTR stock) price has shown bearishness and dragged to $100, indicating massive short buildup in the past sessions. Moreover, the price action indicates the selling pressure, and bulls faced rejection from the barrier of $130. Furthermore, post-release of Q2 earnings, DLTR stock dragged the gains inside the falling channel, forming lower lows and falling below the neutral territory. However, the price is close to the round mark of $100, a make-or-break level. If the price sustains, there will be a positive sign for the bulls in attempting a rebound, whereas if it slips it could lead to a collapse to $80.
Moreover, DLTR stock price is trading below the significant moving averages and is too close to its demand zone of $100. Amid the bearish cues, DLTR stock price has persisted in dragging the gains, made a strong rejection candlestick from the channel highs and is heading toward the channel lows. As per the options chain, at the strike price of $105, there is an equal buildup of open interest showing the incisiveness of bulls and bears; on the call side, 251 hundred shares, and on the put side, 301 hundred shares show the interest equally to hold the cluster.
At press time, DLTR stock price is trading at $104.66 with an intraday drop of 1.68%, showing bearishness on the charts. Moreover, the trading volume increased by 0.67% to 1.718 Million, and the market cap is $23.026 Billion. However, analysts maintained a neutral rating with a yearly target price of $152.98, which suggests a significant upside may be possible in the upcoming sessions.
Dollar Tree, Inc. owns and operates discount variety stores offering merchandise at fixed prices. It operates through the Dollar Tree and Family Dollar segments. The Dollar Tree segment includes operations under Dollar Tree and Dollar Tree Canada brands, with its distribution centers in the United States and Canada. The Family Dollar segment consists of a chain of general merchandise retail discount stores providing consumers with a selection of competitively priced merchandise in convenient neighbourhood stores.
Will DLTR Stock Sustain at $100
On the daily charts, DLTR stock price is in the seller region and is oversold. Moreover, the chart shows that the seller dominance and bearishness persist. However, the price is close to the 23.6% Fib zone, and on the verge of the lower Bollinger band suggesting it is oversold.
The RSI curve stayed in the oversold region and showed bearish divergence, forming a negative crossover on the charts.The MACD indicator showed a bullish crossover and formed green bars on the histogram suggesting that a rebound can be anticipated soon.
Summary
Dollar Tree (DLTR stock) price is trading close to the round mark of $100, and the technicals are suggesting a rebound to retest the 20-day EMA. However, the sellers have looked aggressive and persist in gaining traction, which is a challenge for the buyers to defeat the bears. The trajectory swing low of $100 needs to be protected by the bulls to attain a reversal.
Technical Levels
Support Levels: $100 and $90
Resistance Levels: $110 and $120
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
