Relative Strength Restaurant Forms Bullish Wedge
Darden Restaurants (DRI) shares of the restaurant name are continuing to show great relative strength, holding above the 55 EMA and did not even test the rising 200 day last month during the market turmoil. DRI now sets up a nice coiled wedge pattern that can breakout above 200 and likely reach new highs above 210. DRI does not report until late June so that is not a factor and follows two blowout strong earnings reports the prior two quarters so potential to see investors pile into the name for a ‘run into the next report’. Last week DRI saw large opening sales of 2250 June $170 puts at $1.45, seeing limited downside into June.