Breaking Down Dollar General’s Dramatic Fall: Lessons from a Long Price Channel
2023.09.01 03:24
Low-end retailer (to put it kindly) Dollar General (NYSE:) has lost about 50% of its value since last year. As a chartist, I find this failure fascinating since it illustrates the importance of this very long price channel. DG’s entire existence as a public entity has been contained within this channel until quite recently, but once a bit of damage was done, the writing was on the wall.
Dollar General Corp Price Chart
Looking at this summer, you can see how the “damage” took place on the left side of the chart. Even though the price managed to claw its way back into the channel, a little more than a week ago it slipped under the former supporting trendline yet again. On Thursday, all holy hell broke loose, as the stock collapsed and reached a point such that the past
Dollar General Corp Price Chart
Anyway, nothing actionable here, but pretty extraordinary moves for this fallen giant.
