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trades more like a tech stock than a restaurant chain. The stock rallied to an all-time high at $63.68 last November after rising over 40% in just three months. It then pulled back until February, when it bounced sharply at long-term support. It's been all good news for company shareholders since then.
The upturn reached the November high in late April, where the stock paused for just four days before breaking out on high volume. Price has been moving sideways-to-lower since that event, absorbing the considerable gains it posted that day. This is bullish behavior, setting the stage for a follow-through rally that should reach $70 within weeks.
(Please see chart below.)
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At the time of publication, Farley had no positions in the stocks mentioned, although holdings can change at any time.
Alan Farley is a professional trader and author of
The Master Swing Trader
. Farley also runs a Web site called HardRightEdge.com, an online resource for trading education, technical analysis and short-term investment strategies. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Farley appreciates your feedback;
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