EAT Finds Support

Posted by Blain Reinkensmeyer
March 7, 2007 at 11:13 pm

This is a fantastic chart to see exactly how support actually works with not only past trendlines but my favorite moving average, the 50 day! When you look at the chart of Brinker International (EAT) below you can see very clearly where the stock found its most recent support after coming down from $35. This is almost clockwork and it is good to see $32 hold up so strongly.

Support doesn’t come much easier to see than this, and moving forward what we want to see is EAT now move back up towards $34, where it amy find some resistance from its 20 day moving average. Today was a nice volume day for the stock (hmm which actually for some reason isn’t shown here, I must have turned off volume by accident!) and the stock should be a fun one to watch over the next few weeks.