Dollar Tree Inc (NASDAQ: DLTR) Shares
Break Support Says Market Timer Frank Kollar
October 22, 2009 (FinancialWire) (By Frank Kollar)
Shares of Dollar Tree Inc (NASDAQ: DLTR) have broken below
a rising trend support line that forecasts lower lows ahead.
Prices for shares of Dollar Tree have formed a pennant
pattern (daily chart); with rallies ending at ever lower
highs, and corrections ending at ever higher lows.
This pattern began back in early July at the correction
lows. By connecting the declining rally highs and the rising
correction lows, you form a pennant pattern with ever tightening
support and resistance lines. This pennant pattern has
now been broken.
Unfortunately for Dollar Tree the break out is to the
downside and the almost four months long rising trend support
line was decisively broken in heavy trading on Wednesday,
October 21.
Initial support for expected continued losses is at $46.15.
If that level is broken the next support is at $44.83.
A break of this level would point to a test of the $40.50
level.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com)
which offers market timing strategies for S&P and
Nasdaq index fund traders, as well as bond, gold, small
cap, sector, ETF and stock trading strategies.
Kollar’s research has shown
that the financial markets are in tradable trends approximately
80 percent of the time. FibTimer strategies define trends
and trade them in both advancing and declining markets.
Caring nothing about what newscasters say or what the
latest economic indicator predicts, trends are where
the profits are, and that is where FibTimer is.
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