DG stock hits lowest since December but nears a bullish trendline, historically yielding 6.6% gains in similar setups.
Dollar General Corp (NYSE:DG) shares fell 5.3% to $107.07, deepening its year-to-date loss to 20%. The stock trades at its lowest level since December 4 but is approaching a historically bullish 320-day moving average trendline.
In the past two weeks, DG remained above this level 80% of the time, mirroring its behavior in 80% of the last 42 sessions. Similar signals over the past decade saw the stock rise one month later in 78% of cases, averaging a 6.6% gain. The current pullback could nearly erase its 7.7% monthly drawdown if the pattern holds.
The stock’s 14-day RSI sits at 28, nearing oversold territory, while its Schaeffer’s Volatility Index (SVI) of 36% indicates low near-term options pricing.