One Of Retail's Beaten-Down Names Is Quietly Setting Up Again

Most traders won't touch a beaten-down retailer right before earnings. I want to be ahead of this one, and out before the report ever hits.

Dollar Tree (DLTR) prints before the open on August 27. Names in a clean uptrend tend to drift higher into a catalyst like that, so I ride the drift, and I'm out by the close on the 26th, before the report can surprise anyone.

The setup backs it up. Price is above all three moving averages, stacked and rising, after climbing off a spring low near 90 back to 131. On the 130-minute chart, it's coiling under the highs while the squeeze builds.

It still needs a bullish momentum shift to become an A+ trigger, so I'm watching, not chasing. There's open room toward the old highs around 140 to aim at.