This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Big Stocks Set to Slingshot Higher

Cracker Barrel Old Country Store

It's been a strong year so far for Cracker Barrel Old Country Store (CBRL - Get Report), a small-cap restaurant stock that's been getting substantial attention from investors this week. So far in 2012, shares of CBRL have rallied more than 25%, pulling ahead of the rest of the restaurant industry by a huge margin.

Cracker Barrel is another ascending triangle trade this week. Resistance comes in at $64.50 for this stock, triggering a buy signal if shares can manage to close above that price.

Just so we're clear, there's nothing magical about "triangles" when it comes to a stock's price chart. Instead, it's what the triangle tells us about supply and demand that's important for CBRL's trading prospects. Resistance at $64.50 is a place where CBRL has been hitting its head on a glut of supply of shares, in other words, a spot where sellers have been more eager to sell and take gains than buyers were to buy. That's why shares of CBRL have reversed off of $64.50 each of the last four times they've tried to move higher.

In an ascending triangle, the uptrending support level below resistance adds an important piece of information to our view of CBRL: It tells us that buyers are in control of shares at lower levels. A breakout above resistance means that buyers have won out, and managed to absorb all of the excess supply above $64.50.

With that price barrier taken out, buying becomes the high probability trade in this stock. That's why we buy breakouts.

After CBRL breaks out, I'd recommend placing a protective stop just below support at the 50-day moving average.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $125.06 -0.75%
ALL $64.77 -0.06%
CBRL $153.84 1.10%
TRV $98.54 -0.40%
SYK $96.03 0.04%

Markets

DOW 17,577.55 -106.03 -0.60%
S&P 500 2,061.37 -7.39 -0.36%
NASDAQ 4,958.4670 -33.4730 -0.67%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs