Forget fast food, it's all about casual and fast dining. At least that’s the story when it comes to investments, says Greg Harmon, CMT, founder and president of Dragonfly Capital.
From an investing perspective the fundamentals are one thing, but sometime the technicals give a reason to bite as well. Harmon has three stocks on the menu for investors that are appetizing from a technical standpoint right now.
Jack in the Box (JACK)
The maker of the Jumbo Jack Burger has had a long trend higher from November 2012 to March 2014, then consolidated for 6 months Harmon says in the attached video. The stock is breaking now, and Harmon now sees a price target at $70 on a “ascending triangle break,” and he likes it anywhere over $62.
Cracker Barrel (CBRL)
The restaurant and “old country store” chain is one of the better picks, according to Harmon. Similar to Jack in the Box the stock’s been consolidating the last few months after a nice two year run. Technically it’s setup for a huge run, an “ABCD” pattern as Harmon sees it, meaning if it gets above $103 the stock has a strong chance of pushing up to $174.
Sonic (SONC)
Last on Harmon’s menu is Sonic, the Oklahoma-based drive-in chain. Harmon says there was a strong uptrend trend starting in July 2012 and ending in December of last year. Then the stock went into a consolidation stage known as "a symmetrical triangle," which has Harmon seeing it as a buy over $22.25, with a price target of $28.25.
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