Dollar Tree is a chain of retail discount stores. Most of its items are priced at $1 or less. The categories of products include food and snacks, party, housewares, health and beauty, dinnerware, glassware, toys, gifts, stationery, automotive, electronics, pet supplies, books, teaching supplies, etc. The wide variety of products and an extensive network of 7800 shops are the company’s main strengths. With the re-opening theme now poised to play out, discount retailers like Dollar Tree could do well in the near to mid-term.
The long-term monthly chart for Dollar Tree shows an uptrend in cycles. The price had regularly made higher highs and higher lows and respected the bottom trend line for the most part, except in the months of March 2020 and April 2020, when the price went below. However, the stock has recovered since then and has found support at the $96.7 mark, which was previously resistant and is now acting as a support. Most recently, in May 2021, the price fell 20% before bouncing back up from the support zone. We had recommended Dollar Tree in June 2021, and there is still an opportunity to get in. The likely target is $120, while a stop loss can be placed below the bottom trend line at $91.
Position entered into our long-term tracking portfolio today. The entry point is at $94, and stop-loss is $66.64, which is 30% below the entry point. The short-term to medium-term take profit at the top of the trend is set at $119.86, giving a profit of 26%.
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.