The restaurant group is one that we have admired this year, profiling names like Buffalo Wild Wings, Del Taco and Panera Bread. These stocks showed some amazing technical traits and have continued to this day. But Jack in the Box is a standout, just slightly below its all-time high just achieved six weeks ago.
This stock was against the ropes earlier this year but surged on the back of some luck – the woes of rivals Chipotle and McDonalds. The latter was suffering from weak store traffic while the former was dealing with health-related issues. Combined that opened up some great opportunities for JACK, and they have taken advantage.
The chart shows a broad megaphone pattern of lower lows and higher highs, but we have a strong buy signal on the MACD. Momentum indicators are robust as well, the volume also starting to kick it up. Relative strength has an impressive slope, and while earnings hit on the 21st we feel confident this name is going to exceed the recent highs and take off into new high territory.
