DG - Buying the Cloud Retest After the Base Reclaim

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DG - Buying the Cloud Retest After the Base ReclaimDollar General CorporationNYSE:DGyieldzilla888Dollar General bottomed at S1 (100.59) in May and has climbed all the way back through the Ichimoku cloud, tagging R1 at 119.60. Today's 2 percent pullback is dropping price right onto the top of the cloud near 112 to 114, which is exactly where I want to buy the dip in an uptrend. The setup: Price is above the cloud, conversion is above base, and the future cloud is green. Bullish alignment. This dip is a retest of broken resistance as support, not a trend break, as long as the cloud edge holds. Entry: 115.78 on the pullback. Stop: 109.01, below the cloud and the pivot at 109.59. That is 5.8 percent risk. Lose the cloud and the long is dead. Target: 131.49 into R2, giving a 2.32 risk-reward. Bias: long the cloud retest, stop under 109, target the R2 zone. Clean 2.3 to 1. Not financial advice. Manage your risk.