Dicks Is Drifting Before the Holidays
Dicks Sporting Goods began the year with a breakout to new highs. Now, after a long period of consolidation, some traders may see potential for another push to the upside.
The first pattern on today’s chart is the rally in the first quarter, plus two bullish earnings gaps. Results also beat estimates in September but the stock failed to advance. Those patterns may reflect positive fundamentals as attention focused elsewhere.
Next, the retailer has spent seven months above its peaks from 2021 and 2023. Has new support been established above old highs?
Third is the September low of $202.35. DKS tested and held this level in October. That could suggest another new support area has emerged at an even higher location.
Fourth, prices have remained above the rising 200-day simple moving average (SMA). They’re also near the 50-day SMA. Both of those points are potentially consistent with positive trends over the long- and intermediate terms.
DKS ended Friday by pushing above a falling trendline. It also had the highest close since September 4. Traders may view these points as early signs of a potential breakout.
Finally, U.S. retail sales beat estimates last week for the fourth straight month and the holiday-shopping season is coming into view. Investors may like that bigger picture for DKS.
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Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
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The first pattern on today’s chart is the rally in the first quarter, plus two bullish earnings gaps. Results also beat estimates in September but the stock failed to advance. Those patterns may reflect positive fundamentals as attention focused elsewhere.
Next, the retailer has spent seven months above its peaks from 2021 and 2023. Has new support been established above old highs?
Third is the September low of $202.35. DKS tested and held this level in October. That could suggest another new support area has emerged at an even higher location.
Fourth, prices have remained above the rising 200-day simple moving average (SMA). They’re also near the 50-day SMA. Both of those points are potentially consistent with positive trends over the long- and intermediate terms.
DKS ended Friday by pushing above a falling trendline. It also had the highest close since September 4. Traders may view these points as early signs of a potential breakout.
Finally, U.S. retail sales beat estimates last week for the fourth straight month and the holiday-shopping season is coming into view. Investors may like that bigger picture for DKS.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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