It Was Hard Saying Goodbye to Ruby Tuesday

• Posted by Greg Harmon
• on February 25th, 2015

I had to say goodbye to Ruby Tuesday last weekend too. Not quite the same as this classic Rolling Stones song, but I am missing her. For me it was the stock, and my long call options had expired. It happens all the time. You lose your dreams and then you lose your mind. Life can be unkind.

But the stock chart below gives me hope that she just can’t go to far away.

Since the beginning of the year, Ruby Tuesday ($RT) stock price has been building an ascending triangle. This price pattern often precedes a break out in the stock price higher as the selling supply at the top of the triangle dissipates. And when it does it creates a target move to 7.25. The momentum indicators are supportive of a break higher, with the RSI rising and heading toward the bullish zone and the MACD also rising.

The flat SMA’s at 7.00 above may give it a some trouble on the way higher, but a 50 cent move in a $6.50 stock is still a pretty good short term return. And with the April 7.5 Calls trading at 25 cents it is a low cost defined risk way to participate should it move.

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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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