Trade of the Day: Dollar Tree (DLTR)

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Today, we’re opening a new bullish trade on Dollar Tree (NASDAQ:DLTR). After a strong support bounce off of $83 last Friday — a price level that served as resistance for the stock last April and May — DLTR has gone on to complete a solid bullish “flag” continuation pattern with another positive move on Monday.

DLTR has shown that it has been quite resilient to the negative price-war onslaught brought on by Amazon’s (NASDAQ:AMZN) entrance into and continued dominance of many retail industries. DLTR even went so far as to raise its comparable same-store sales guidance after beating both revenue and earnings estimates at its latest earnings announcement in late-August.

We expect the stock to continue climbing to resistance at $90, which was established in late November of 2016.

‘Buy to open’ the DLTR November 90 Calls (DLTR171117C00090000) for a maximum price of $1.10.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

Most recently, John and Wade are co-options strategists of Turbo Trader Live — a live, interactive trading room service that runs two hours every trading day the market is open. Turbo Trader Live focuses on long call and put options, as well as long and short vertical spread strategies. Find out how to get in on the live trading action and start making real profits by clicking here.


Article printed from InvestorPlace Media, https://investorplace.com/2017/09/trade-of-the-day-dollar-tree-dltr-2/.

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