Here’s Scott’s take on Texas Roadhouse $TXRH – April 6, 2023
This is Scott with your Chart of the Day. I have never eaten at a Texas Roadhouse ( NASDAQ: TXRH ), but based on this chart I can tell that people like it.
For whatever reason, Texas Roadhouse ( NASDAQ: TXRH ) is less than 1 percent from the 2021 high, way over here, back in May of 2021. It’s less than 1 percent, so it fell with the rest of the market, but for whatever reason, it started a nice uptrend here in early 2022. We have a few backtests of some key moving averages and now we are close to the all-time high once again.
And so I want to bring this chart to your attention because this trend is strong. When the rest of the market was going down Texas Roadhouse ( NASDAQ: TXRH ) was still actively tradeable in somewhat of an uptrend. Remember what 2021 what like? It was brutal, and this stock was still finding clear support, and finding buyers around these key moving averages.
So if the market does turn up from where it is right now I have to believe that Texas Roadhouse ( NASDAQ: TXRH ) is going to maintain this trend and probably make a new high above that 110.00 level. And so I definitely think this is a stock you want to pay attention to. And potentially look for some pullback buy opportunities near some of these moving averages.
Typically, when this stock gets extended above this orange line, that’s the 8-day exponential, it magnets back down. So you really want to buy this close to the moving averages, sell the extension, wait for the pullback, rinse, wash, repeat, or is it wash, rinse, repeat? I don’t know how they do it in Texas, but this chart is strong and it is definitely one that I think you should have an eye on in this market.
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