October 22, 2009 (FinancialWire) (By Frank Kollar) — Shares of Dollar Tree Inc (NASDAQ: DLTR) have broken below a rising trend support line that forecasts lower lows ahead.

Prices for shares of Dollar Tree have formed a pennant pattern (daily chart); with rallies ending at ever lower highs, and corrections ending at ever higher lows.

This pattern began back in early July at the correction lows. By connecting the declining rally highs and the rising correction lows, you form a pennant pattern with ever tightening support and resistance lines. This pennant pattern has now been broken.

Unfortunately for Dollar Tree the break out is to the downside and the almost four months’ long rising trend support line was decisively broken in heavy trading on Wednesday, October 21.

Initial support for expected continued losses is at $46.15. If that level is broken the next support is at $44.83. A break of this level would point to a test of the $40.50 level.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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