Dollar Tree Jumps 6.01% On Technical Breakout With 7.16% Two-Day Rally

Dollar Tree (DLTR) rose 6.01% in the latest session, marking its second consecutive day of gains with a cumulative 7.16% advance. This analysis examines DLTR’s technical posture using the past year’s data.
Candlestick Theory
Recent price action shows a decisive bullish breakout, with the last two sessions forming large green candles that engulf preceding consolidation near $90–$92. Key resistance at $97.02 (June 3 high) has been breached, converting it to immediate support. A prior resistance cluster near $88 (tested May 23–28) now serves as major support. The current candle’s long body and minimal wick signal strong conviction, though proximity to the psychological $100 barrier may invite profit-taking.
Moving Average Theory
The 50-day MA ($89.50) crossed above the 100-day MA ($86.80) in mid-May, confirming a bullish medium-term shift. Price now trades above all key MAs (50/100/200-day), with the 200-day MA ($80.40) providing long-term support. The ascending 50-day MA is acting as dynamic floor since late April, reflecting sustained upside momentum. Consecutive closes above the 100-day MA since May 20 reinforce bullish trend strength.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover expanding above its signal line after a brief convergence in late May, confirming renewed upward momentum. KDJ’s %K (85) and %D (78) are in overbought territory but maintain a bullish spread, indicating strong directional conviction. While both oscillators suggest near-term froth, their synchronized upward trajectories imply trend continuation potential barring divergence.
Bollinger Bands
Price has pierced the upper Bollinger Band ($95.20) amid a volatility expansion, breaking from a prolonged squeeze period (late April to mid-May). This signals an overextended short-term move, increasing the probability of consolidation near $97–$100. The midline ($91.30) aligns with the 50-day MA, creating robust support. Band width expansion after contraction suggests follow-through potential post-consolidation.
Volume-Price Relationship
The breakout’s sustainability is validated by substantial volume: June 3 volume (8.99M shares) was 2x the 30-day average. Notable accumulation occurred near $70–$75 in April (volume spikes >10M shares), reinforcing that zone as long-term support. Recent advances on rising volume (May 20–27 and June 2–3) confirm institutional participation. However, below-average volume during late May pullbacks signaled weak selling pressure.
Relative Strength Index (RSI)
The 14-day RSI (72) is near overbought territory but not yet diverging from price. Readings above 70 have consistently preceded minor corrections in Q1 2025, though strong trends persisted thereafter. Current momentum mirrors early April’s RSI surge from 40 to 75, which catalyzed a 20% rally. While caution is warranted above 70, the absence of bearish divergence suggests room for upside before significant reversal risk.
Fibonacci Retracement
Using the March 2025 low ($61.87) and August 2024 high ($121.92), key retracement levels emerge: $91.90 (50%) and $97.80 (61.8%). The 50% level underpinned May’s consolidation, while the recent close at $96.72 tests the 61.8% resistance. A confirmed break above $97.80 opens the path to $102.50 (78.6% retracement). This Fibonacci zone converges with psychological $100 resistance, creating a critical technical inflection point.
Confluence and Divergence Observations
Bullish confluence is evident: The MACD crossover, volume-backed breakout, and Golden Cross align near $92–$94 support. Fibonacci 61.8% resistance coincides with the upper Bollinger Band, increasing significance at $97–$98. However, the RSI/KDJ overbought readings diverge from Bollinger Band overextension, warning of consolidation within the overarching uptrend. The lack of volume divergence supports continued upside after near-term profit-taking.