NEW BULLISH Plays
Fiesta Restaurant Group. - FRGI - close: 34.99 change: +0.53
Stop Loss: 33.80
Current Gain/Loss: unopened
Entry on July -- at $--.--
Listed on July 02, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 245 thousand
New Positions: Yes, see below
Why We Like It:
FRGI is back! This company runs a chain of Tex-Mex "fast-casual" restaurants. The stock peaked a couple of weeks ago but traders have been buying the dips over the last several days. You can see on the daily chart below that FRGI has been struggling with resistance at the simple 30-dma. Now it's testing the 10-dma, 20-dma and the 30-dma. A breakout higher here could spark the next leg higher.
I do want to warn you that bears could argue the recent bounce is nothing more than a bear-flag consolidation pattern. That is possible. A move below the $33.50 level or the 50-dma would be bad news for FRGI's longer-term up trend. Tonight we are suggesting a trigger to open bullish positions at $35.25. If triggered our target is $39.50.
Trigger @ 35.25
Suggested Position: buy FRGI stock @ (trigger)