29Aug10:50 amEST

Fiesta Making a Run at Chotchkie's

Select casual dining plays have enjoyed something of a snapback rally in recent weeks, seemingly under-the-radar. 

While it is true that many eyes have been glued to CMG for a potential bottom, the likes of BWLD and FRGI have also been noteworthy. 

CMG, green again this morning, would likely need a close above $435 to confirm even a temporary double-bottom. BWLD, headed into football season, seems to be eager to price in at least some of that good news. 

But FRGI is perhaps the most intriguing prospect in the space. 

After quarters on end of getting pummeled, since early-2015, buyers adequately defended the $20 area and have since made reasonable progress. 

The stock surged higher on Friday amid a soft, sloppy tape. But this morning Piper Jaffray downgraded Fiesta Restaurant Group, which should actually serve as an excellent litmus test for just how durable this rally may be. 

On the daily chart, below, if FRGI can close today down not much more than 2%, I would view that as constructive in light of Friday's rally. The stock still needs to clear and hold above $26 to confirm a base bottom. 

But one step at a time. And surpassing the Chotchkie's of the world would be a good initial goal.

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