The move sent the Corapolis, Pa., retailer's shares to $99.90 at today’s high, as sellers unsurprisingly stepped in at $100.
With a return to societal normal back in focus, it’s no surprise that Dick’s Sporting Goods is seeing solid growth. The company crushed earnings and revenue expectations for the quarter and raised its outlook.
In a nice turn of events for retail investors, the stock is actually rallying on good news.
We’ve seen strong earnings reports out of Walmart (WMT) - Get Walmart Inc. Report, Home Depot (HD) - Get Home Depot, Inc. (HD) Report and others. Yet, with a few exceptions — like Target (TGT) - Get Target Corporation Report — many of these stocks have failed to muster much upside momentum.
Can Dick’s Sporting Goods stock keep the pedal to the metal? Let’s look at the chart.
Trading Dick’s Sporting Goods Stock
After a strong breakout through $50 earlier this year, Dick’s Sporting Goods hasn’t looked back. It has continued to ride the 10-week moving average higher for months now.
On the recent dip, the 10-week moving average again held as support, as the shares also held up over $83. The key on the upside was $91.80, which was the prior all-time high.
The weekly candle still has a few days left before closing, but so far this week’s action looks quite impressive. The shares rallied all the way up toward $100 before backing off the session highs.
Moving forward, bulls want to see $92 act as support. On the upside, they’re looking for a move over Wednesday’s high and over $100.
That could allow the shares to rally to the 261.8% extension up at $108.50.
On the downside, a break of $92.50 will put an important test in play with the 10-week moving average. This measure has been support for months now and needs to be held should it be tested.
A break of this measure puts $83 back in play, but for now, that scenario is not a major concern given the post-earnings rally we’re seeing today. Let’s see if Dick’s Sporting Goods stock can clear $100.