Let’s chew on this $TXRH Chart – May 14, 2024
This is Scott at StockMarketMentor.com and your Chart of the Day. I want to take a look at Texas Roadhouse ( NASDAQ: TXRH ).
For the most part, we’ve seen some pretty good relative strength in a bunch of restaurant stocks. A little while ago I talked about Wingstop ( NASDAQ: WING ), it is in a nice uptrend, support at that 21-day moving average. Chipotle Mexican Grill ( NYSE: CMG ) is above the 21-day. Domino’s Pizza ( NYSE: DPZ ) is above the 21-day.
And so we’re seeing some selective restaurants actually holding up really well. So I took a look at Texas Roadhouse ( NASDAQ: TXRH ) today, and I think this chart is actually looking better than all of them. Because they are in and around the 21-day, Texas Roadhouse ( NASDAQ: TXRH ) is above all the major moving averages, and in a strong uptrend here.
They had their recent earnings report and it looks pretty positive, except for a slight downside surprise on revenue. But it didn’t really affect the stock that much, it popped up and then sold off, but it still held above all the major moving averages. On the daily chart, I see a slight flag here, a downward-sloping trendline right there, and we have some higher lows as well.
So it is in a bit of a pennant pattern here. I want to see if this can break out and make a potential new high with a move above 170.00. I would definitely want to set an alert on my software just around that 170.30 level and look for a strong move through that zone coming on volume.
Now, one thing about this chart has me a little iffy, and that’s if I flip to a weekly chart. On the weekly chart, we can see decreasing volume as the price goes up on a weekly. So it is primed for a potential weekly higher low that could see it land, I think down here at around 159.00 is probably doable. So if we do get a weekly higher low I’d like to see that level hold as support.
There’s no real rush without that break higher, and if it does end up pulling back I would want to see it find support right around there on a weekly level. But if we do get some upside follow-through, definitely keep an eye on Texas Roadhouse ( NASDAQ: TXRH ) and look for a move through that 170.30 pivot coming on volume.
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