Brinker International EAT-N declined from US$78.33 in March 2021 to US$21.48 in July 2022 (A-B) below a falling trendline (dotted line) and below the falling 40-week Moving Average (40wMA). The stock reversed the negative trend in late-2022 as it rallied above these indicators (C). Subsequently, it settled in a horizontal trading range mostly between US$30 and US$42 (dashed lines). The recent rise above the top of this range signaled a breakout and the start of a new uptrend (D).
Behaviour indicators including the rising 40wMA confirm the bullish status. There is good support near US$42; only a sustained decline below US$40 (near the 40wMA) would be negative.
Point & Figure measurements provide targets of US$54 and US$59. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com