Denny’s beat was good, but it could still be a Grand Slam

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America loves breakfast, especially all day breakfast. So maybe it was not a surprise that after reporting earnings last night Denny’s ($DENN) stock is up over 7% today. If you were holding it into earnings congratulations. But after the long path lower and meek bounce then long consolidation it is not very likely you were involved. Does the stock have more upside? It looks like it.

The chart below shows the price action since making a top last August. It found support through January and February and moved higher. Then two months of consolidation led up to earnings. The break of consolidation following earnings brought the price to the falling trend resistance going back to September. That may give many pause before buying.

denn

But it also pushed the price over the 200 day SMA for the first time since October. The momentum indicators are bullish too, with the RSI bouncing off of the lower end of the bullish zone, and the MACD crossing up. The Bollinger BandsĀ® are opening to the upside too. And the Measured Move out of the consolidation looks for 11.50. There is potential to hit a Grand Slam in this stock still. Protect against the 200 day SMA and if conservative wait for a move over resistance to start swinging.

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