This is How You Sonic

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

Sonic, $SONC, the drive up burger stand took a hit in January. That was just silly right? who can refuse a burger? Last week the stock found support at the rising 200 day Simple Moving Average (SMA) and it bounced Monday. This offers a great trading opportunity. The chart below shows the support at 17.10. Also notice that the Relative Strength Index (RSI) is rising out of technically oversold space with the MACD about to cross up and the accumulation/distribution statistic turning higher. Burger not for you? Well their shakes are great too! I bought some for the family to get started today, and it will sit alongside our Burger King, $BKW, position in the Hamburger sub-portfolio. With the natural stop at 17.10 it risks 4.5%. I am looking for at least 18.90 to the upside.

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