Buy American Steak and Ale

• Posted by Greg Harmon
• on March 12th, 2013

How can you go wrong with a statement like that. A great filet mignon and a hearty ale. Heaven. And there is a way to get just that in your trading portfolio as well. Take a look at these two gems.

Ruth’s Chris Steak House, $RUTH

Ruth’s Chris Steak House, $RUTH is consolidating after a recent move higher, into an ascending triangle. The break of the triangle higher carries a target of 10.25 but then the Measured Move higher from the mid February burst kicks into a target of 11. It will probably raise some caution flags with some traders as the Moving Average Convergence Divergence indicator (MACD) is at elevated levels on the signal line, but it is notable that the slight pullback on it stopped before a bearish cross. The Relative Strength Index (RSI) was technically overbought but has worked that off so it is ready for another move up. Wait for the break to get long.

Boston Beer, $SAM<

Boston Beer, $SAM, is also consolidating in an ascending triangle after a move higher. I told you they go together! The maker of Sam Adams has a target of 173 on a break above the triangle and it has a RSI that is bullish with a MACD that is a little troublesome, rolling lower. The Measured Move on the break higher takes it to 175. Lots of upside if it triggers, but wait for this one.

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Dragonfly Capital Views Performance Through February 2013 Expiry

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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