Options Edge: Credit collects 40% of Width
The bullish DailyPlay for Friday, May 8th is Dollar General (DG). DG has rallied 10.5% in the last month and has consolidated around $175 for 3 weeks. As it expands its digital strategy and a low-cost pricing model on its goods its an attractive play for consumers looking to save during these economic times.
- BAC credit card spending on groceries accelerates above 11%
- Increase in staples and grocery demand due to COVID-19
- Digital & low-cost strategy is attractive heading into a recession
- DG’s 1M trend consolidates within a bullish 6M trend, good risk/reward entry for long positions
- DG recently broke above its $167 support level
- Bullish relative strength score (9 out of 10)