Dollar General Corporation : The area of USD 47.25 might facilitate a technical rebound
Entry price | Target | Stop-loss | Potential |
---|
$47.29 |
$0 |
$44.91 |
-100% |
---|
The USD 47.25 support, currently tested, should allow the U.S. chain of variety stores, Dollar General, to rally again.
From a fundamental viewpoint, the security is valued with a PER of 16.84x for 2013 and 14.24x for 2014. Besides, EV/Sales ratio is at 1.12x for this year.
Besides, Dollar General is oversold and this situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next USD 50.3 resistance.
Investors can take a long position within the USD 47.25 area. The first target price will be the 20-day moving average at USD 51.2. In case of breakdown of the USD 45.65 support at the closing price, investors should close their positions.
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