Darden May Have Broken OutDarden Restaurants jumped to new highs in December, and some traders may look for the move to continue this year.
The first pattern on today’s chart is the March 2024 high of $176.84. DRI remained below that level through early last month. The stock rallied through it after earnings and revenue beat estimates on December 19. Prices have remained above the old peak since, potentially confirming the breakout.
Second, the lower lows between March and July, followed by a series of higher lows, may be viewed as a rounded bottom.
Next, the 50-day simple moving average (SMA) crossed above the 100-day SMA in September and above the 200-day SMA in October. The 100-day surpassed the 200-day SMA in late November. (See the yellow arrows.) That arrangement, with faster SMAs above longer SMAs, may reflect a longer-term uptrend.
Finally, the 8-day exponential moving average (EMA) has remained above the 21-day EMA. That may reflect a shorter-term uptrend.
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