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The Many Reasons To Buy Darden Restaurants

Published 06/08/2016, 01:18 PM
Updated 05/14/2017, 06:45 AM
DRI
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Darden Restaurants (NYSE:DRI) has its hands in everything from food to high-end dining. And the stock price moved up. It enjoyed a 73% rise from the low in July 2014 until it peaked in July 2015. But since then it has struggled. A 50% retracement into November last year fond support. Then a retest of the high. Another pullback followed to a higher low and now it is back at resistance again.

This price action, an ascending triangle, carries a target to 82 on a break to the upside. But there's more. The move off of the 2014 low and then 50% pullback gives a target to 98 on an AB=CD pattern. Momentum is strong as the RSI is rising in the bullish zone. And the MACD is positive and trending higher.

Darden Restaurants

If that were not enough, the options open interest is also pointing to a move higher. in the June contract the biggest open interest is at the 72.5 and 75 strikes on the call side. In July the biggest is at the 67.5 strike call but there was also a buyer of 1500 July 75 calls Wednesday as well as many smaller lots of July 72.5 calls totaling over 700 contracts. You are surely involved with one of their restaurants. Maybe it is time to get involved with their stock too.

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