Dollar Tree Inc (DLTR.US) stock surges over 15% after the discount retailer increased its share repurchase authorization by $1.05 billion to a total of $2.5 billion as part of what it called a "disciplined capital allocation strategy that balances returning capital to our shareholders and investing in our business for growth." The company said it will buy back shares from time to time in the open market or through privately negotiated transactions. There is no expiration date to the exercise. Company said it would begin testing the sale of higher-priced items in some of its stores to account for higher costs.
Dollar Tree Inc (DLTR.US) stock has been trading in a downward move recently, however buyers managed to halt declines at $83.80 level, which coincides with 61.8% Fibonacci retracement of the upward wave launched in March 2020. Stock launched today's session with a massive bullish price gap and broke above resistance at $97.50 which coincides with 38.2% retracement and now acts as the near-term support. Currently the price is approaching the upper limit of the wedge formation which coincides with the 200 SMA (red line). Should a break higher occur, upward move may accelerate towards resistance at $106.55 or even all-time high at $120.50. Source: xStation5
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