On the back of a stronger than expected earnings report, Darden Restaurants (DRI) rallied 8.1% yesterday, which propelled it up the rankings within the Green Favored Zone of the SIA S&P 500 Index Report. The shares have moved up to 12th place after rising 20 spots yesterday and 96 spots over the last month.
Darden Restaurants (DRI) shares staged a major breakout yesterday, blasting through $92.50 to complete a bullish Ascending Triangle and to signal the start of a new advance. Next potential upside resistance appears near $107.50, the bottom of a previous range, and then near $122.50 where a measured move converges with the 52-week high. Initial support appears in the $90.00 to $92.50 area between a round number and the recent breakout point.
Over the last month, Darden Restaurants (DRI) shares have come under increased accumulation, generating a number of bullish technical signals including: a bullish Spread Double Top breakout, the snapping of a downtrend line, and the completion of a bullish Double Top.
Potential upside resistance tests on trend may appear near $105.10 based on a horizontal count, $109.35 and $113.75 based on previous column lows, and the $123.10 to $125.60 zone where two horizontal counts converge with the $125.00 round number.
With a perfect SMAX score of 10, DRI is exhibiting near-term strength across the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.