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Grubhub Is Delivering Gains

Published 10/24/2016, 03:41 PM
Updated 05/14/2017, 06:45 AM
GRUB
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Online food delivery company Grubhub (NYSE:GRUB) has been bringing restaurant food to your door for 17 years. They now deliver from over 45,000 restaurants in the US and London. And more that that, its stock is now delivering solid price gains.

The chart below tells the story. After a long decline the stock entered a basing period in November. That lasted 8 months. At the start of June it began to move higher and has run through 3 steps up. It found resistance the last time at 44 and pulled back though October to 40. But two weeks ago it started higher again. Now it's at resistance again.

Grubhub

The Measured Move would put a target of 47.50 on the stock. And it has support in the chart to get there. The Bollinger Bands® are opening to the upside. The RSI is rising and bullish. In fact it just printed a Positive RSI reversal, with a lower low in the RSI but a higher low in price, which reinforces that target. And the MACD bounced off of the zero line and has crossed up. The only thing left is for a confirmation via a move over the trigger price at 44.

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