SHAK sold off hard last week notwithstanding improving numbers (revenues +31%)
It is currently rebounding on the SMA200 support, which has proved resilient so far.
The SMA 200 support level also corresponds to the medium term support line (Aug 2017 to date).
Finally, the daily candle today (hammer) comes as an added confirmation of potential rebound.
I would...
The EW count is pretty dubious but this stock is still showing life as it posts a breakout here. Reckon it might still have some room to run up before any serious correction.
SHAKESHACK:SHAK
Nice range trading, suitable for trend followers, evidently.
Still looks OK to buy, using the lower parallel as a dynamic
exit point if broken at any point before it reaches a very
obvious upside target at 39.30 -39.62 range - at which point
positions can be reversed with stops above 40.
And then if that short is taken out it will show that it's...
SHAK is moving in a range between 31 and 39, at this moment is in the support of this range with a possible double bottom. There is apossible that SHAK will keep in this range.
KL: 31.50
SL: 30.80
TP1: 35.00
TP2: 39
SHAK seems breaking down from an upward channel. It also look look like a rising wedge breakdown. We think it has good downside potential from here.
* Trade Criteria *
Date First Found- June 21, 2017
Pattern/Why-Upward channel breakdown; Rising wedge Break
Entry Target Criteria- Break of $36.71
Exit Target Criteria- $34 or lower
Stop Loss Criteria- $38.6
...
This stock was largely pumped up for a major exchange stock. It is a foody but if we take GoPro for example sitting on 300m cash in 2014, this guy is seriously over cooked. $16 a share feels right for me. The company just spent $32m on equipment, raised revenue but raised cost too. Now they sit with an $8m loss for 2015. Not good...
Could this be heading lower?
Technically Speaking
Quite a fall from the IPO run in 2015. Technically, it really is simple. It will either hold these lows, or it won't. It will most likely take some upside surprises to get this stock going again. I remember this company when it went public. Almost nobody had any doubts this would be a huge success and guess what it might be one day....
Shake Shack $SHAK seems to have an interesting pattern. It has broken up the trend line. It went above 40 and has come back to rest on the same line from above. I am buying around $35 with a $2 risk. Chances are it will be a higher top, probably around $45!
