Is it True Restaurant Stocks at All-Time High? Part II


Last week, I had posted an article on Long & Short Investment covering how the American consumers are still eating out and willing to continue to spend despite the high unemployment rate.  It looks like this trend will not be ending anytime near future.  Today, I will perform technical analysis on another restaurant stocks: PF Chang’s China Bistro (PFCB).  



Unlike MCD and BWLD, PFCB is not close to its all-time highs.  But, the good news is that PFCB did experience a break out from its consolidation period.  After the break out, it made a nice retracement back to the top of the consolidation range and quickly surged to a new recovery high.  The movement of breaking the resistance, retracing back to range prior to the breakout, and surging to a higher level confirms that PFCB will continue to make higher recoveries.  Although there is another pull back to $38 after reaching $41 range, I am convinced that PFCB should move higher.

Its 20-day moving average is at around $38 and its 50-day moving average is at around $36.  Also, the breakout level occurred at $37.  These are key levels to watch as support levels.  

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