SIACharts Logo

Commentary >

Dollarama Inc. - (DOL.TO) - September 18, 2023

Discount retailer Dollarama (DOL.TO) has been steadily climbing up the rankings in the SIA S&P/TSX Composite Index Report since March. This month it has returned to the Green Favored Zone from a short dip down into the yellow zone, boosted by stronger than expected earnings and same store sales announced last week. On Friday, DOL.TO finished in 32nd place, up 5 spots on the day and up 23 positions in the last month. This three-year weekly chart highlights the consistency and strength of the ongoing uptrend in Dollarama (DOL.TO) shares. Over this time, DOL.TO has steadily advanced in a step pattern of rallies followed by periods of consolidation at higher levels.

Last week, Dollarama broke out to a new high on a spike in volume, signaling that accumulation has intensified and a new rally phase has commenced. Measured moves from previous trading ranges suggest the potential for upside resistance near $97.25 and $108.75 on trend, plus the $100.00 round number. Initial support appears near $90.00 a round number and recent breakout point.

Since March, when a breakdown in Dollarama (DOL.TO) shares failed in a Bear Trap Reversal, the discount retailer’s shares have been steadily climbing without even a 3-box correction on a 2% chart. Earlier this summer, DOL.TO staged a bullish Double Top breakout, signaling that its long-term uptrend has resumed. Last week, this rally extended to new all-time highs, indicating that accumulation continues.

Initial resistance may emerge near the $100.00 round number, followed by $103.90 and $108.10 which are based on vertical and horizontal counts. Initial support appears near $88.65 based on a 3-box reversal.

With its bullish SMAX score increasing to 9, DOL.TO is exhibiting strength against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.