NEW YORK (TheStreet) -- Shares of Jack in the Box Inc. (JACK) are down by 0.52% to $86.49 in early afternoon trading on Tuesday. The San Diego-based quick service restaurant chain operates and franchises almost 3,000 Jack in the Box restaurants as well as the Qdoba Mexican Grill fast-casual restaurants.
The restaurant group Jack in the Box has fallen on hard times, and even the best of names have recently fallen with some dramatic selling. After an enormous run from late 2014 into the spring of this year, JACK peaked and has dropped sharply. This could have more room to the downside.
Taking a look at the chart, we see a defined downward- sloping channel and a series of lower highs and lower lows. But what is interesting is the strong distribution and very heavy price action on the down days (arrows on price).
This tells us certainly some profit taking is happening but institutional distribution is hitting the stock. We saw the gap filled at $87 last month on a nasty sell day with some volume.
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