Dollar Tree Investors About to Get Plowed?

by Donald Harder

Has Dollar Tree $DLTR climaxed?

Nearly doubling in price since last February, Dollar Tree is almost certainly on the radar screen of investment funds looking for year-end window dressing candidates, but just how high can it go from here?

The daily chart looks quite healthy, which may attract new investors, but the weekly chart is exhibiting a strong warning sign that may indicate a reversal is just around the corner. The classic railroad track pattern on its weekly chart indicates it may be ready for a sharp reversal.