Family Dollar Stores, Inc. (NYSE:FDO) gapped higher today on news that activist investor Nelson Peltz’s Trian Fund Management purchased a large stake in the company. Technically speaking, the stock gapped higher and continued up, crossing the $42.00 level and hitting a perfect double top on the daily chart. Note the chart below. This double top is a major resistance area. The stock will have a tough time in the short run getting through this price level. Note on the chart below that after it crossed $42.00, hitting the major double top resistance, it pulled back and is hovering below.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
