Bullish Spike on DG: Consumer Staples playI think that people might hate this pick... but I love "hated" tickers.
NYSE:DG came up on my 30m Spike scan this morning amid a sea of red and tanking "risk on" stocks. This indicates some interesting opening price action this morning as a "hey, come look at me!"
This action is happening in the context of a clear rotation into "safe" stocks like Consumer Staples and Utilities; DG is renowned for being a Consumer Staple. The logic is that people will still need to buy basic good, no matter what, and Dollar General's brand is to sell these at low costs to Consumers.
Dollar General experienced a meteoric rise (and fall) due to what analysts attribute as a rapid OVER-expansion. Anecdotally, I recall a newly built location in rural Georgia that I pass by frequently on trips to see family that opened, closed, and in just recent weeks was renovated and re-opened. Either way, I like a stock that everyone thinks is dead that more importantly has come to a decadal low, matching with Volume Profile support, that was also the technical Support that launched the prior rally.
Furthermore, on the Daily there is a clear path for a good Ichimoku Breakout that taking the stock now lets one get the jump on. A full Daily breakout would reverse the bear trend since last April.
