Five And Dime's Drop Dollars
Two of the major winning stocks in 2010 were Dollar Tree Inc.(NYSE:DLTR), and Family Dollar Stores Inc.(NYSE:FDO). Dollar Tree Inc. was trading around $32.00 in January 2010. Yesterday the stock traded over $56.00 a share before staging a sharp high volume reversal. The stock cut right through its daily 50 moving average which puts the stock in a weak technical position on the charts. Today DLTR is trading lower by $2.53 to $52.21 a share. The stock will have daily chart support around the $50.00 level and much more around the $46.50 area.
Family Dollar Stores Inc. is also declining sharply by $4.17 to $45.13 a share. This decline is over an 8.00 percent decline for the stock. FDO will have daily chart support around the $45.00 area in the near term. Should the stock decline further the $42.00 area would be the next major support level for the stock.
Often during the month of January many retail stocks will come under pressure as institutional profit taking takes place after the holidays. Other leading retail stocks such as Costco Wholesale Corp.(NYSE:CSCO), and Target Corp.(NYSE:TGT) are trading lower by over 1.0 point on the today's trading session.
Nicholas Santiago
InTheMoneyStocks.com
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