DLTR has been descending within a bear channel (from 25 Oct/08 Nov highs/26 Oct low) since posting the 82.49 YTD high (25 Oct). While the 79.51 level near the bear channel resistance (10 Nov high) caps, further consolidation towards 77.32 is anticipated (Support 1). A break below there would open 76.32 (Support 2) ahead of 72.30 (Support 3) where a potential swing low would be formed before buyers would reassert.
However, a sustained break above the 79.51 resistance (Resistance 1) would negate and confirm the breakout of the bear channel. Clearance above would allow bulls towards 80.92 (Resistance 2) which shields 82.49 for a retest (Resistance 3).
Trading Indication:
Short-term: Sell at 78.80 or higher;
Target at 76.32 and lower;
Stop Loss at 79.51 (0.9%)
Long-term: Possibly buy lower
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