Dollar General (DG - Get Report) is a discount retailer in the U.S., which offers a selection of merchandise, including consumables, seasonal, home products and apparel. This stock closed up 2.5% at $61.59 in Mondays trading session.
Mondays Volume: 7.36 million
Three-Month Average Volume: 2.91 million
Volume % Change: 141%
From a technical perspective, DG spiked notably higher here right above its 50-day moving average of $58.75 with strong upside volume. This stock has been uptrending for the last six months, with shares moving higher from its low of $49.47 to its recent high of $61.82. During that move, shares of DG have been making mostly higher lows and higher highs, which is bullish technical price action. That move has pushed shares of DG within range of triggering a near-term breakout trade. That trade will hit if DG manages to take out Monday's intraday high of $61.64 to its 52-week high of $61.82 with high volume.
Traders should now look for long-biased trades in DG as long as its trending above Mondays low $60.13 or above its 50-day at $58.75, and then once it sustains a move or close above those breakout levels with volume that this near or above 2.91 million shares. If that breakout hits soon, then DG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $65 to $67.