JACK - Jack-In-The-Box - Daily -Ready to breakout!
JACK is the owner of the fast growing Q-Doba restaurant chain and has been building a nice zone of consolidation and accumulation before its next advance to new highs.
The relative strength to the overall market has been impressive lately and relative strength has broken out of a 6-week range. My proprietary indicator I call "RgMov" shows how easy the market moves in one direction and it is pressing up against its all time highs here today. RgMov usually leads price breakouts.
The last earnings report has capped the advances in JACK shares since May and it looks like this is the fifth attempt on that KEY EARNINGS LEVEL and likely that it will push through it shortly.
The risk looks low to me here with a stop at 86.54 and upside to 99.92 from 89.72 last, which gives us a better than 3:1 upside/downside risk ratio.
As a side note, notice how well the red "sellers" zone catches all the "highest lows" of each rally phase and notice how the rising green "BUYERS" zone catches all of the "lowest highs" of each decline lately.
Give the stock market downdraft lately and the way this stock has held up, I think it's just a matter of a short amount of time until we find out why people have been buying this stock. Perhaps we have rising estimates coming down the road or sellers have lightened up to their proper weighting. Either way, the shift of buying is taking over here.
Tim 3:17PM Friday, July 10, 2015 89.72 last JACK
The relative strength to the overall market has been impressive lately and relative strength has broken out of a 6-week range. My proprietary indicator I call "RgMov" shows how easy the market moves in one direction and it is pressing up against its all time highs here today. RgMov usually leads price breakouts.
The last earnings report has capped the advances in JACK shares since May and it looks like this is the fifth attempt on that KEY EARNINGS LEVEL and likely that it will push through it shortly.
The risk looks low to me here with a stop at 86.54 and upside to 99.92 from 89.72 last, which gives us a better than 3:1 upside/downside risk ratio.
As a side note, notice how well the red "sellers" zone catches all the "highest lows" of each rally phase and notice how the rising green "BUYERS" zone catches all of the "lowest highs" of each decline lately.
Give the stock market downdraft lately and the way this stock has held up, I think it's just a matter of a short amount of time until we find out why people have been buying this stock. Perhaps we have rising estimates coming down the road or sellers have lightened up to their proper weighting. Either way, the shift of buying is taking over here.
Tim 3:17PM Friday, July 10, 2015 89.72 last JACK
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