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Possible Bullish Inside Day Candle Pattern Detected for Dollar General (NYSE:DG)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Dollar General (NYSE:DG) based on the price action in the company's shares. Yesterday's price range of $68.58 and $69.07 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of Dollar General may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

In the past 52 weeks, Dollar General share prices have been bracketed by a low of $59.75 and a high of $96.88 and closed yesterday at $68.69, 15% above that low price. Over the past week, the 200-day moving average (MA) has remained constant while the 50-day MA has advanced 0.9%.

Dollar General (NYSE:DG) has potential upside of 17.8% based on a current price of $68.69 and analysts' consensus price target of $80.92. The stock should run into initial resistance at its 200-day moving average (MA) of $74.05 and subsequent resistance at its 50-day MA of $82.06.

Dollar General Corp. operates a chain of discount retail stores located primarily in the southern, southwestern, midwestern and eastern United States. The Company offer a broad selection of merchandise, including consumable products such as food, paper and cleaning products, health and beauty products and pet supplies, and non-consumable products such as seasonal merchandise.

SmarTrend recommended that its subscribers protect gains by selling shares of Dollar General on August 16th, 2016 by issuing a Downtrend alert when the shares were trading at $90.58. Since that call, shares of Dollar General have fallen 24.4%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish am inside day candle Dollar General

Ticker(s): DG