During Tuesday’s Mad Money program host Jim Cramer told viewers that among the restaurants, he recommended Darden Restaurants Inc. (DRI) and Chipotle Mexican Grill (CMG) as big winners.
When we looked at the charts of DRI on Sept. 22 ahead of earnings, we wrote that “I find it a challenge to arrive at a clear strategy when the price action is pointed up (higher targets from the Point and Figure charts), but the On-Balance-Volume line has rolled over… with the indicators mixed I would take a neutral stand for now.”
Let’s check out DRI again.
In this daily Japanese candlestick chart of DRI, below, we can see some recent upper shadows above $105. Trading volume has declined recently and the On-Balance-Volume (OBV) line has turned a little lower suggesting a shift toward more aggressive selling.
The Moving Average Convergence Divergence (MACD) oscillator is close to a bearish crossover.