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Shake Shack (SHAK) Breaks Above Channel Resistance; $56 is Next Resistance

Shake Shack $SHAK appears to be breaking a falling channel resistance, but we should probably anticipate resistance soon, around $56 a share. 

SHAK Daily Chart

(click to enlarge)

Channel Breakout:
- The daily chart shows a market that has been in consolidation/correction mode since June 2018.
- Price has fallen from $76 in June 2018 to almost $40 a share in December 2018, before climbing back above $50 in 2019. 
- The daily chart shows price breaking above a falling channel.
- We also see the RSI push above 60, which is a sign that the bearish momentum is gone. 
Still Bearish Structure:
- The overall structure is still bearish based on the pattern of lower highs and lower lows.
- Given this prevailing trend, we should anticipate resistance when price approaches the $56 area. 
- Note that the 200-day simple moving average (SMA) resides around $56 at the moment.
- A bearish divergence between price and the RSI would also provide reason for the market to sell around $56. 
Support Levels:
-  Now, if price retreats from $56, it would be retreating from a previous high instead of below the previous high. Thus, we can start anticipate a sideways market.
- In fact, we might want to anticipate support around $46.40-$47 area, which was a common support. A break below $46 would open up $40-$41. 
- A break above $57 on the other hand, would be a bullish signal towards the next support/resistance pivot around $62-$62.50. 

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