Several names in the casual dining space are breaking out of extended basing periods and look like they are headed higher.
BJ’s Restaurants (BJRI) retested and held its 50 day moving average two weeks ago, and then last week gapped up through horizontal resistance in the $32 area. It built on that initial gain and closed near its high of the week.
Brinkers International (EAT) the parent company of Chili’s, had been consolidating for the last three months under horizontal resistance in the $33 area. It broke above its 50 day moving average at the beginning of the month and rallied up to resistance. Repeated testing of this level eventually led to a confirmed breakout.
Cheesecake Factory (CAKE) has defined horizontal resistance in the $45.75 area but is having some difficulty closing above it. If you look at the charts individually with money flow indicators, CAKE is the most heavily accumulated. The implication is it will catch-up with the two other stocks in the space.