Family Dollar is in a position to benefit from the weak economy, especially with late summer/back-to-school buying by consumers who will be looking for bargains with the price of fuel still close to record prices. It will take a continued drop in oil over the next several months for consumers to change their buying patterns. In the meantime, discount retailers such as Family Dollar will benefit. The stock is moving out of a channel baseline pattern between 20 - 22 on heavy volume and is testing minor resistance in the 25 - 26 area which will likely be penetrated. Next minor resistance is around 30 with a target price of 40.
$24.64 (08/08/08)
