DG

This called a price action trade.

blog-dg-5m-10-5-2016

There was a small gap down this morning, a nickel, which was followed by a $1.50 drop in the first 5 minutes. Certainly a panic price movement.

My first buy at $67.11 was set up before the market opened. The additional buy at $66.76 was entered after I felt the selloff was over.

I sold half of this position at  $68.24 for 67 cents to reduce my position size because DG broke support at $67.14 which indicates DG could go lower.

Next support levels are $64.90 (minor), $62.50 (minor) and $60.02, which is major support.

DG has been sold to Dollar Tree for $74.50.

Dave C.

 

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