Will DARDEN RESTAURANTS INC (NYSE:DRI) breakout?

Our stock screener has detected a potential breakout setup on DARDEN RESTAURANTS INC (NYSE:DRI). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:DRI.

Technical Analysis Observations

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Overall DRI gets a technical rating of 7 out of 10. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• DRI is one of the better performing stocks in the Hotels, Restaurants & Leisure industry, it outperforms 77% of 135 stocks in the same industry.
• DRI is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so DRI slightly outperforms the market at the moment.
• Looking at the yearly performance, DRI did better than 86% of all other stocks. However, this relatively good performance is mostly due to a recent big move.

For an up to date full technical analysis you can check the technical report of DRI

Why is NYSE:DRI a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:DRI exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, DRI also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 189.38, a Stop Loss order could be placed below this zone.

How can NYSE:DRI be traded?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

More breakout setups can be found in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.