Happy St. Patrick's Day to everybody! I am confident that MarketClub and the Trade Triangle technology can help you discover that Irish pot of gold at the end of the rainbow.
Today, I'm going to be following up on the weekend trades that I showed you in last Friday's video. If you go back and watch that video, you may want to fast forward through the first four minutes and forty seconds of the video to the part where I picked out stocks for the "52-Week High On A Friday" strategy.
Out of the four stocks I picked, three of them were excellent candidates and one did not make the cut. I will show you why you should not have taken this "52-Week High On A Friday" trade.
Today, I'm going to be analyzing Dollar Tree, Inc.(NASDAQ:DLTR). Dollar Tree has had enjoyed a spectacular rise over the last 5 years. After trading below $7 in January of 2008, this stock stayed in a pretty convincing uptrend and made an all-time high of $60.19 on October 21, 2013.
This in-depth analysis of Dollar Tree is not to say the stock can’t go higher, perhaps later in the year, but rather noting certain technical elements that are falling in place that do not look good for this stock. You only have to look back at stocks like Netflix and Apple to see how they can have spectacular falls from all-time highs and still come back.
Not shown on today's chart are 2 negative engulfing lines that occurred in the past 9 weeks on the weekly chart. That is another bad technical sign for this market.