Darden Restaurants (DRI) just recently gapped down on earnings breaking through several daily pivots forcing the stock to hunt for new demand below.
GAP REVIEW
On June 20, 2014, DRI gapped down taking out the $48.00 support level. Broken support level overhead puts the stock under some pressure to find the next level of support and demand.
KEY LEVEL
Overhead supply exists at $48.00. The next demand and support level exists into $44.00.
HE TRADE
Any bounce back up into overhead supply at $48.00 area is a nice entry for a swing short. The stop would be over the $48.50 and target would be the $44.00 area.
TRADE TIP
With gaps, learn to play broken demand areas as new supply with targets down into the next demand levels. Stick to the basics of supply and demand.
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Disclosure my Swing Newsletter Subscribers have been short since 6/23/2013.
