Dollar Tree (DLTR) recently saw its Relative Strength (RS) Rating rise from 89 to 92, signaling improved technical performance in the stock market. This rating, which ranges from 1 to 99, assesses how a stock’s price action over the past year compares to that of other publicly traded companies. Historical data indicates that stocks with an RS Rating of 80 or above are often well-positioned for significant price momentum.
Currently, Dollar Tree is considered to be in an extended position after surpassing a key resistance level of 107.48, identified as the buy point in a second-stage cup-with-handle formation. Investors should now keep an eye out for potential new entry points or patterns, such as a three-weeks-tight formation or a retreat to the 50-day or 10-week moving averages, which often indicate a favorable buying opportunity.
In its latest earnings report, Dollar Tree reported a 12% increase in earnings per share (EPS) alongside a 9% rise in sales, reflecting solid operational performance. Within the Retail-Discount & Variety sector, Dollar Tree holds the No. 3 position, trailing behind the top-ranked stock, Five Below (FIVE).
Investors looking for strong performers in the market should pay close attention to those with rising RS Ratings, as these stocks may indicate a favorable trajectory that aligns with market trends.
