16May2:25 pmEST

You're Not as Bullish on Chotchkie's as You Should Be

If you look at some of the moves in restaurants which have been either dead money or obliterated (or both, first getting crushed and then flatlining for years), you may be astounded to see the likes of Noodles (NDLS) up from $5.30 on January 2nd to a current price of $9.62. Other names like CMG CHUY EAT SHAK WING have made impressive moves, too. 

Furthermore, we now have the retail/consumer discretionary complex clearly outperforming this week, with the XLY ETF threatening an attractive triangle breakout as we speak.

It remains to be seen if bulls can seal the deal in this corner of the market. However, we would be remiss not to comb through the many overlooked charts like Fiesta, below on the daily timeframe, to come up with the next wave of actionable long setups as a way to play the consumer theme. 

With plenty of restaurants in Texas, FRGI essentially has room to grow across the country with brands like Taco Cabana. Note how well price had held above its 200-day moving average this time around after an extended prior downtrend. 

Indeed, this sector continues to flash steady technical progress, even if it is not as sexy as trading various tech issues. And now even a mocked name like Potbelly (PBPB) is coiling under resistance and threatening to break higher, too. 

Simply put, You're Not as Bullish on Chotchkie's as You Should Be. 

Adjusting to a Slower Pace Stock Market Recap 05/16/18 ...


This website is intended for educational purposes only. | © 2019 MarketChess.com | All Rights Reserved | Website design by Saco Design | Superpowered by Site Avenger

mobile site | full site