After hot run, Dollar Tree shares could rally further
DLTR•Dollar Tree shares have risen about 30% since early October, and a cup-and-handle pattern with supporting momentum measures points to a potential move above $180. Resistance lies at $151, $155, $161 and $177.19; a drop below $131-$132 would put the bullish view in question.
1. Pattern points higher
Dollar Tree shares have rallied about 30% in just over a month, and a cup-and-handle formation has taken shape on the stock’s chart. The shares broke out of the pattern between $135 and $136, producing a potential target above $180 based on the formation’s depth. The Relative Strength Index, MACD and Bollinger Bands also indicate the shares could extend their gains.
2. Resistance and risk
Dollar Tree faces resistance at $151, $155 and $161, followed by its all-time high of $177.19, reached in April 2022. A decline below the $131-$132 area would put the bullish view in question.
