Dollar General shakes off negative pressure - Analysis - 27-05-2022

Dollar General's stock (DG) surged in the intraday levels after the retailer raised sales forecasts for the year after reporting forecast-beating first quarter results, with the stock spiking 13.71%, or 26.79 points, settling at 222.13, with trading volumes surpassing 6.1 million shares, above 10-day averages of 3.3 million shares. 

Technically, the gains came after the stock leaned on the pivotal support of 185.15, lending it positive momentum which helped the stock shake off negative pressure from the 50-day SMA, supported by positive signals from the RSI after reaching oversold levels. 

Therefore we expect more gains for the stock, targeting the first resistance at 239.35. 

Expected trend for today: Bullish