U.S. consumers are showing big signs of stress again, we said on Sept. 30.

“As a result, we’re starting to see discount retailers do a bit better. After diving from a high of about $155 to $106.45, DLTR has become severely oversold at support dating back to late 2021. It’s also over-extended on RSI, MACD, and Williams’ %R. From its current price, we’d eventually like to see DLTR refill its bearish gap around $145,” we added.

At the time, DLTR traded at $106.45. Today, it’s up to $114.08 and could run even more.

Helping, Goldman Sachs recently upgraded DLTR to a buy rating, with a $137 price target.

“Analyst Kate McShane and the team said they see strong earnings growth potential for the discounter supported by continued market share gains from improving traffic trends with sticky new customers, an improving discretionary cash flow outlook for lower- and middle-income consumers in 2024, and better shopability/in-stocks after recent investments,” as noted by Seeking Alpha.

From a current price of $114.08, we’d like to see DLTR test $120 next. In the long term, we’d like to see DLTR refill its bearish gap around $140 – with patience.