Chart of the Week: Darden Restaurants
Hey good morning everybody. Time for our chart of the week for August 19. We’re gonna focus in on Darden; DRI is the symbol. Darden Restaurants owns Olive Garden and a few other restaurants as well.
The stock had earnings last week, which were real strong. The stock’s pulled back a little bit over here, and I think it’s gonna be a good setup to start buying the stock again.
So, one thing you’ll notice here is the stock broke through some pretty heavy resistance around the $217 area about five to six days ago, and it surged through when earnings hit last week – and you can see that big huge bar right there – to a new all-time high.
And it actually came up on Thursday, pretty good day Friday, consolidated. Same thing with this last Monday on the 17th. So a consolidation period for about four to seven days before breakout above the old high on bigger volume would be ideal.
We do have a good strong relative strength here.
Looking at the lower indicators too. MACD has been on a buy signal for well over a month, since the end of July. And seeing good on-balance volume here. New all time high on the on-balance here, too.
Stock is well above the moving averages – the 50 and the 200 day moving average.
Nothing really wrong here. I think that even if it comes back and tests the $217 level, I think it would definitely be a buy. You could certainly see it – if it doesn’t pull up, it could come back down over here. Maybe come close to testing that level and then turning around and moving right back up again, just like that.
So take a look at Darden. I think this has been a very strong stock for a while. Had a good nice consolidation period with a pretty wide range for most of 2026.
And you can see that here from about $192 up to about $217 – so about a $20 range. That’s about 10% of the price of the stock.
It offered a lot of opportunities to buy here, sell here, buy here, sell here, etc, etc. About four or five different times. But now it’s broken out to the upside.
So take a look at Darden; DRI.
Thanks so much for watching everyone, and I’ll see you guys next time.
