Dollar General could breakout the USD 59.7 resistance in the short term.

From a fundamental viewpoint, the group is in a good financial situation. Sales have increased by + 11% on the current year with a ROE of 20.1%, sign of a good capacity to generate profit.

Since several months, the stock has initiated a sharp bullish trend mainly due to strong fundamentals. The move could be continued, supported by the 20-day moving average, and return to its highest price levels.

Therefore, investors will benefit from the signal given by the crossing of the USD 59.7 resistance to take a long position in the stock. The objective will be set near USD 64 (swing effect). Once the position is opened, a stop loss should be fixed under effective entry point to guard against a trend reversal.