Loading Up on Cracker Barrel

• Posted by Greg Harmon
• on September 10th, 2014

Cracker Barrel, $CBRL, is about as American a restaurant as you can get. Macaroni and Cheese, Fried Chicken, Meatloaf, Hush Puppies and large portions. Rocking chairs on the porch. I love it. Unfortunately for me my health conscious Pilates instructor wife will never even let me drive in the parking lot. So when the stock sets up for a move higher it is my only chance to get involved in the company. otherwise I have to live vicariously through others. Well it just happens that now is one of those times.

The chart above shows the weekly price action in the stock since September 2012. It had a great run higher until December 2013. Since then it has pulled back and gone through a consolidation. As it is bouncing up against the resistance line at 103 the momentum indicators are supporting more upside and a break higher. How high could it go? One view is that the break would trigger a AB=CD pattern. And that pattern would target a move to 174, possibly by the end of next year. Please pass me the green beans!

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