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The Amazing Chart on Dick's Sporting Goods

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It’s been one heck of a run for Dick’s Sporting Goods (DKS - Free Report) . This is stock that’s more than doubled since November of last year. At the COVID lows, DKS shares were down under $15. Today’s knee-jerk reaction to earnings had the stock bouncing off its 50-day moving average at $214.78 to close the day at $220.77.

The news was good, with EPS coming in at $4.37 on revenues of $3.47 billion. That was a sizeable beat on both top and bottom lines. The company also raised FY24 EPS to a range of $13.55 to $13.90, while raising same store sales estimates to 2.5% to 3.5%. A stock like this runs the risk of the news simply not being good enough to justify how far it has come.

Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.

Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.

Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.

Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.

Dave Bartosiak's technical analysis approach adds depth to our understanding Dick’s Sporting Goods stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.


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