Chart of the Day: A Jolt Off Important Support
This stock's 200-day moving average should hold tight and attract more buyers.
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Even the best and highest quality names can move higher when the market moves up as well. After a massive slaughter we have experienced over the last week or so eventually the bulls come back and will find the best names from the prior cycle, if all things remain equal. Of course, that is not always the case now as we have moved into the world of tariffs and perhaps a trade war, and given the unknown outcome it would make sense for CEOs and executives to show some caution.
Dutch Bros BROS put together a couple of really nice quarters last year and rewarded shareholders with a spectacular ride higher. Lately, however, the stock lost some energy, falling sharply from recent highs, though it has landed on really good support, the 200-day moving average.
If you look back to November, that was a launch point for Dutch Bros. At the time, the stock was trading around $35 and just moving sideways. An earnings report helped ignite the shares for a move higher.
Currently, the indicators show a sell signal on the MACD (moving average convergence/divergence), volume trends are bearish and the candles are purple, or bearish, on the GoNoGo composite of indicators.
So, we wait for a bit more upside to get comfortable again with Dutch Bros, which is one of the better names that simply got swept up in the selling of the market.
We like BROS and rate it a Two in TheStreet Pro Portfolio, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long BROS.
