On the back of a stronger than expected earnings report, Darden Restaurants (DRI) rallied 8.1% yesterday, which propelled it up the rankings within the Green Favored Zone of the SIA S&P 500 Index Report. The shares have moved up to 12th place after rising 20 spots yesterday and 96 spots over the last month.
Darden Restaurants (DRI) shares staged a major breakout yesterday, blasting through $92.50 to complete a bullish Ascending Triangle and to signal the start of a new advance. Next potential upside resistance appears near $107.50, the bottom of a previous range, and then near $122.50 where a measured move converges with the 52-week high. Initial support appears in the $90.00 to $92.50 area between a round number and the recent breakout point.
Over the last month, Darden Restaurants (DRI) shares have come under increased accumulation, generating a number of bullish technical signals including: a bullish Spread Double Top breakout, the snapping of a downtrend line, and the completion of a bullish Double Top.
Potential upside resistance tests on trend may appear near $105.10 based on a horizontal count, $109.35 and $113.75 based on previous column lows, and the $123.10 to $125.60 zone where two horizontal counts converge with the $125.00 round number.
With a perfect SMAX score of 10, DRI is exhibiting near-term strength across the asset classes.
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