We’ve been admiring the restaurant sector this year, profiling names like Buffalo Wild Wings, Del Taco and Panera Bread. These stocks showed (and continue to show) some amazing technical traits. But Jack in the Box is a standout as it sits just slightly below its all time high achieved just six weeks ago.
This stock was up against the ropes earlier this year but surged on the back of some luck; namely, the woes of rivals Chipotle and McDonalds. The latter was suffering from weak store traffic while the former was dealing with food safety issues. Combined, these problems opened up some great opportunities for JACK, and the company has taken advantage of it.
The chart shows a broad megaphone pattern of lower lows and higher highs. We have a strong buy signal on the MACD, momentum indicators are robust, volume is starting to kick it up, and relative strength has an impressive slope. Earnings hit on November 21, and we feel confident this name is going to exceed the recent highs and pop higher into new territory.
Jack in the Box (Nasdaq: JACK) Video Chart Analysis
Take a deeper dive into the chart action on tech stock Nasdaq: JACK and learn how to read the technicals. Get Bob Lang’s full analysis as he marks up our chart of the week.
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About Jack in the Box
Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants and Qdoba Mexican Eats fast-casual restaurants primarily in the United States. As of August 10, 2016, it operated and franchised approximately 2,250 Jack in the Box restaurants in 21 states and Guam; and approximately 600 Qdoba Mexican Eats restaurants in 47 states, the District of Columbia, and Canada. The company was founded in 1951 and is based in San Diego, California.
