We have three new signals tonight representing the staples of American culture: Fast food, coffee, and TV! I did take a look at Coca-Cola ($KO) just in case, but it’s still got a lot of work to do to get me interested. Here they are:
Burger King ($BKW)
$BKW staged a strong breakout this week following its earnings release, having been rangebound for the last 4 months. The breakout itself on Monday couldn’t quite take out the all time high close of mid-June, but it did with its follow-through and that’s the part that impresses me most, that high tight consolidation, and today’s fresh closing high gives us the trigger for an entry. I think we can safely use the 10/18 daily/weekly close of $19.18 as our stop, with the 200-day MA in close proximity. A further consolidation or resumption higher from here could see us quickly move that up to around the $20 mark.
This stock is still in a monster trend and it’s a travesty I haven’t been involved until now. (Major internal inquiry underway.) Regardless, this was a great performance today, gapping lower at the open and recovering steadily all session to finish at an all time high. The 10/9 close of $75.26 is also a very comfortable stop only 7% away.
Discovery Comms ($DISCA)
This is another stock that has trended very strongly, and with today’s high-volume earnings-fueled advance has broken out of its most recent consolidation to an all time high close. For our stop I don’t think we need to go all the way to the ascending trendline pivot of $77.93 from 10/9, I think we can safely use the 10/15 close of $79.12 initially, with the 20 and 50-day MA’s just above, and the 200-day closing in behind. And don’t be put off by some of those gap-filling dark candles in the last three months, clean it up by switching to a line chart, take off a couple of MA’s, and what do you see? It’s the same data, the same stock, but now the path and price trend is even clearer.