DRI had a gap up on an earnings announcement back on March 21st. The top of this gap became support while the stock price continued to rise. This rise in price created a bearish divergence with the RSI indicator.
The earnings release in September led to a gap down. The price actually consolidated just below the March gap. Friday's trading has the price testing the resistance level of the March gap zone with the stock finding strength.
DRI is finding relative strength within the Restaurant industry but still needs some more time to see if it is gaining strength on the SPX. If the price continues to rise I would expect a re-test of the bottom of the gap down zone around $122.
The earnings release in September led to a gap down. The price actually consolidated just below the March gap. Friday's trading has the price testing the resistance level of the March gap zone with the stock finding strength.
DRI is finding relative strength within the Restaurant industry but still needs some more time to see if it is gaining strength on the SPX. If the price continues to rise I would expect a re-test of the bottom of the gap down zone around $122.