Dick’s Sporting Goods (DKS) entered a range-bound phase at the end of the year after breaking out to an all-time high in March 2024. Multiple attempts to break out to new highs were repelled, pushing the price back to previous support levels. This week, DKS appears to have finally completed its bullish rotation out of this long-term congested territory. With a solid price breakout and improving momentum, Dick appears to be positioning itself for further potential upside. On the daily chart, we can see that the price gap reached new highs around $220 in March 2024. This gap is called the “exhaustion gap” because it occurs after a long-term uptrend and signals a final push higher to complete the uptrend. After pulling back to swing lows around $180, DKS jumped higher again to retest previous resistance. While the stock did break above $220 multiple times during 2024, each attempt ultimately failed, falling below resistance. Finally in December 2024, we saw DKS break above resistance before testing the level from above and setting a new swing low earlier this month. To complete this classic breakout setup, Dick pushed to new all-time highs above $240 this week. The weekly chart shows that this latest price breakout is just the latest in a series of bullish rotations since the COVID-19 lows of 2020. The long-term trend remains firmly bullish, with prices remaining above the 150-week moving average, which has been sloping upward since May 2020. The weekly PPO indicator produced a bullish crossover following major lows every year starting in 2020. For the 2022 and 2023 lows, bullish reversal signals occurred exactly when price tested the 150-week moving average. According to the latest signal in December 2024, the price has pulled back slightly to the 40-week moving average. Multiple time frame analysis can help us triangulate short-term breakout movements with longer-term trend phases. Applying this approach to Dick’s Sporting Goods’ chart suggests that the recent upside breakout may just be the beginning of a new bull phase for the Pennsylvania-based retailer. -David Keller, CMT marketmisbehavior.com Disclosure: (None) All opinions expressed by CNBC Pro contributors are theirs alone and do not reflect the opinions of CNBC, NBC UNIVERSAL, its parent or affiliates, and may have been endorsed by CNBC Previously broadcast they appeared on television, radio, online or other media. The above is subject to our Terms and Conditions and Privacy Policy. This content is for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to purchase any security or other financial asset. The content is general in nature and does not reflect any individual’s unique personal circumstances. The above may not apply to your particular situation. Before making any financial decisions, you should strongly consider seeking advice from your own financial or investment advisor. Click here to view the complete disclaimer.
According to the chart, the retailer just broke out and is entering a new bullish phase | Real Time Headlines
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