Here are 2 discount store stocks that look very similar! $BJ $DG – August 5, 2022
DG BJ
This is Scott with your Chart of the Day. I actually have two charts that I think are worth adding to your watch list this weekend.
The first one is Dollar General ( NYSE: DG ). You can see Dollar General ( NYSE: DG ) had quite a fall from grace, here in April, all the way down to that 184.00 zone but retraced the move and is now consolidating near the highs.
The second stock I want to show you is BJ’s Wholesale Club ( NYSE: BJ ). The same kind of thing, look at this, from April down to the lows, retraced the move and is back to the highs. And so these stocks are set up, in my opinion, pretty nicely for potentially a retest of the highs.
On Dollar General ( NYSE: DG ) we are above all the major moving averages here. I told members today, at stockmarketmentor.com, that today maybe you could take a starter position along these moving averages as long as the stock holds above that 21-day EMA.
But I think the real move will come with a break out above that 256.50 level. And so I am going to set an alert on Dollar General ( NYSE: DG ) right below 256.50. And I will look for a strong move on volume through that level.
The same kind of setup here on BJ’s ( NYSE: BJ ). Some of us over at stockmarketmentor.com took a position either yesterday or today in BJ’s ( NYSE: BJ ) because it has the same chart pattern, it is consolidating near some highs.
Today BJ’s ( NYSE: BJ ) had a really nice move off of that daily 8 exponential period moving average and I don’t think it is too late to get involved if we get a strong move through 71.26 coming on volume.
Now, earlier this week I did talk about BJ’s ( NYSE: BJ ) as a potential setup to watch. And now I think it is primed for a breakout if we can get above and stay above, and do it on volume.
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