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.
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