Uncovering Noteworthy Technical Analysis Findings for BRINKER INTERNATIONAL INC (NYSE:EAT).

BRINKER INTERNATIONAL INC (NYSE:EAT) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:EAT.

Technical Analysis Observations

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, EAT scores 9 out of 10 in our technical rating. Both in the recent history as in the last year, EAT has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, EAT did better than 98% of all other stocks. We also observe that the gains produced by EAT over the past year are nicely spread over this period.
• EAT is part of the Hotels, Restaurants & Leisure industry. There are 136 other stocks in this industry. EAT outperforms 99% of them.
• EAT is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so EAT slightly outperforms the market at the moment.
• In the last month EAT has a been trading in the 122.07 - 158.35 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

Our latest full technical report of EAT contains the most current technical analsysis.

Why is EAT a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For EAT this score is currently 7:

EAT has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 156.90. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 149.81, a Stop Loss order could be placed below this zone.

How can EAT be traded?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Of course, there are many ways to trade or not trade EAT and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.