Texas Roadhouse (TXRH) is a best in breed restaurant play, which has rallied by 6% year-to-date and 13% during the last 12 months, sporting a dividend yield of 1.6%. Earnings have struggled, though the May 2, Q1 report showed growth of 11.6% following three consecutive negative reports.
The stock is higher 12 of the last 17 weeks with zero weeks of distribution and it needs to firmly establish itself above $50 as it has been bobbing above and below that key level. Notice the trade between round numbers with $40 holding on March 13. It is currently holding near a $50.61 weekly cup base trigger taken out the week ending June 9, in a seven-month pattern. Enter TXRH with a buy stop above bullish ascending triangle trigger at $52. A breakout should achieve all-time highs with a target of $57.