New Dollar Tree Price Target After Earnings Surprise Leaves it Blistered
Our target for the budget retailer along with two other names to short as share prices are headed lower.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Let's check three stocks that appear technically bearish and look ready to short.
While we will not weigh in with fundamental analysis on these issues, we will pop the hood for a look at the charts.
Let's dig in.
Crown Holdings Has More Downside in Store
We saw a big move down this past week in Crown Holding CCK, but it should be viewed as a surprise. The stock had been in a massive downtrend for weeks leading up to Thursday's cascade lower. Indicators were bearish as well, the MACD has rolled over while the RSI is bending lower at a steep angle. That means this stock is being sold hand over fist. Nothing bullish here, and falling through the 200 day moving average is not useful.
Let's take a stab at a short play here on Crown, looking to fill the April gap and then some, targeting the $82 area, with more downside to $75. The heavy volume is a clue, but put in a stop at $100 just in case.
Intuitive Surgical Chart Is in Need of Help
A downtrend within a sharp market uptrend is not healthy, and that is what we see for Intuitive Surgical ISRG. A serious wave of lower highs, lower lows is our textbook definition of a downtrend. Further, with the stock market making new highs and broadening out, a name like ISRG failing here is suspect. We would not trust a move upward on this name and if it did rise it would be a good short opportunity.
Money flow is weak and has been for weeks, the trend by way of the Ichomoku cloud is red while heavy volume on the sell days is prevalent. We could target the April lows at $428 and then look for a spot down at $400. We'll stop out on a move up to $490. Very bearish chart.
Dollar Tree Has Seen Better Days
With strong earnings from competitor Dollar General DG one would have expected to see likewise from Dollar Tree DLTR. The stock was blistered after an earnings miss and nearly tagged the 100-day moving average in one day. That was followed up with heavy downside volume, something we know is quite bearish. MACD rolled over a month ago and has been pointing downward, while money flow just flipped bearish after a nice run higher. RSI is bending lower at a steep slope, more downside is coming.
So, we look for a generous move to the 200 day moving average, at $84 or so, then below there the $70 level has good support but not before a solid 30% gain to the downside. If wrong, we'll stop out at a move to $110.
