Restaurant and retail names have been taking it on the chin lately, which is no surprise since the economy has been showing signs of weakening. (Even though the jobs market has been strong and the Fed has maintained a generous monetary policy, neither cannot carry the entire economy on its back.) This sector is filled with “haves” and “have nots,” and by the look of its chart, you can clearly see that Del Taco (TACO) is a must “have” name.
After putting in a bottom mid-summer, Del Taco made a nice series of higher highs and higher lows on its way to the 200 ma. It popped over that level, did a classic retest, and made a monster move – it’s up nearly 20% since then. The uptrend is intact, the MACD renewed its buy signal on Monday, money flow is very strong, turnover has been solid, and it beat earnings estimates when its report was released on Monday.
I like this stock for a move toward 15 or so. If it pulls back to the trend line, it that could be a nice buying opportunity.
Del Taco(Nasdaq: TACO) Video Chart Analysis
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About Del Taco
Del Taco Restaurants, Inc. develops, franchises, owns, and operates Del Taco quick-service Mexican-American restaurants in the United States. The companys restaurants offer Mexican inspired and American classic dishes. As of September 22, 2016, it operated approximately 550 restaurants in 16 states. The company was founded in 1964 and is headquartered in Lake Forest, California.