Dollar Tree, Inc. (DLTR) reported better-than-expected earnings on May 28. The stock popped to $99.ღ02 that day and then dropped to as low as $91.81 on June 8.

The stock closed Monday, June 8, at $93.73, down just 0.3% year to date and in bea🌠r market territory at 21.7% below its Oct. 22 high of $119.71. Dollar Tree stock is also in bull market territory at 55.7% above its March 28 🥃low of $60.20.

Dollar Tree has a 澳洲幸运5开奖号码历史查询:P/E ratio of 19.23 and does not offer a dividend, according to Macrotrends.

The daily chart for Dollar Tree

A year ago, shares of Dollar Tree were above a 澳洲幸运5开奖号码历史查询:golden cross, with the 50-day 澳洲幸运5开奖号码历史查询:simple moving average above the 200-day simple moving average. Th🥃is positive setup ൲tracked the stock to its Oct. 22 high of $119.71.

The stock gapped lower on Nov. 26 on missed earnings. A 澳洲幸运5开奖号码历史查询:death cross formed on Dec. 23, when the 50-day simple moving av𝔉erage fell below the 200-day simple moving average to indicate that lower prices would folᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚlow. This sell signal tracked the stock to its March 28 low of $60.20.

As 2020 began, the stock was below its semiannual risky level at $104.88. On the rebound, the stock returned to the 50-day simple moving🐠 average on April 16. Dollar Tree gapped above its quarterly pivot at $88.31 and its 200-day simple moving average on the positi♒ve reaction to earnings released on May 28. The 200-day simple moving average remains a magnet at $93.48.

The weekly chart for Dollar Tree  

The weekly chart for Dollar Tree is positive, with the stock above its five-week modified moving average of $86.30. The stock moved above its 200-week simple moving average, or 澳洲幸运5开奖号码历史查询:reversion to the mean, at $90.45 during the week of May 29.

The 12 x 3 x 3 weekly slow 澳洲幸运5开奖号码历史查询:stochastic reading is projected to rise to 73.26 this week, up from 66.92 on ဣJune 5. At the Oct. 22 high, this reading was above 90.00, putting the stock in an inflating parabolic bubble formation. This bubble popped. During the week of Feb. 7, this reading was below 20.00, putting the stock in a category called too cheap to ignore. This led to the strength above its 200-week simple moving average.

Trading strategy: Buy Dollar Tree st🔯ock on weakness to its quarterly value level at $88.31. Reduce holdings🍸 on strength to the semiannual and annual risky levels at $104.88 and $115.67, $116.69, respectively.

How to use my value levels and risky levels: The stock's closing price on Dec. 31, 2019, was an input to my proprietary analytics. Semiannual and annual levels remain on the charts. Each calculation uses the last nine closes in these time horizons.

The second quarter 2020 level was established based upon the March 31 close, and the monthly level for June was established based upon the May 29 close. New weekly levels are calculated after the end of each week, while new quarterly levels occur at the end of each quarter. Semia🌠nnual levels are updated at mid-year, and annual levels are i🍸n play all year long.

My theory is that nine years of 澳洲幸运5开奖号码历史查询:volatility between closes are enough to assume that al♔l possible bullish or bearish events for the stock are factored in. To capture share price volatility, investors should buy shares on weakness to a value level and reduce holdings on strength to a risky level. A pivot is a value level or risky level that was violated within its time horizon. Pivots act as magnets that have a high probability of being tested again before their time horizon expires.

How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings was based upon 澳洲幸运5开奖号码历史查询:backtesting&nbsꦦp;many methods of reading share-price momentum with the objective of finding the combination that resulted in the fewest false signals. I did this following the stock market crash꧒ of 1987, so I have been happy with the results for more than 30 years.

The stochastic reading covers the last 12 weeks of highs, lows, and closes for the stock. There is a raw calculation of the differences between the highest hig𝓡h and the lowest low versus the closes. These levels are modified to a fast rea🅰ding and a slow reading, and I found that the slow reading worked the best.

The stochastic reading scales between 00.00 and 100.00, with readings above 80.00 considered 澳洲幸运5开奖号码历史查询:overbought and readings below 20.00 considered oversold. A reading above 90.00 is considered an "inflating parabolic bubble" formation, which is typically followed by a decl𝓡ine of 10% to 20% over the next three to five months. A reading below 10.00 is considered "too cheap to ignore," which is typically foll꧃owed by gains of 10% to 20% over the next three to five months.

Disclosure: The author has no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.