Keep an eye on Dollar Tree (DLTR).
Oversold, it’s just starting to come back strong. It’s also reversing from over-extensions on RSI, MACD, and Williams’ %R. From a current price of $110.10, we’d like to see it initially test $115 again soon. Helping, Goldman Sachs just upgraded DLTR to a buy rating from neutral. The firm sees strong earnings growth and likes its earnings potential.
Plus, with many Americans struggling, many are turning to lower priced stores, such as Dollar Tree. In fact, as noted by Daily Mail, “Among households with six-figure incomes, 45 percent now say they would shop at dollar stores, up from 39 percent one year ago…”