Sonic Has Room to Run
The year-to-date relative performance of fast food restaurant operator Sonic (SONC) to competitors Wendy's (WEN) and McDonald's (MCD) is 37% and 27%, respectively, and the technical picture suggests that the company could build on recent gains.Sonic (SONC) -- Weekly Source: StockCharts.com View Chart » View in New Window »
The weekly chart shows the stock price retracing 38% of the 2011 range earlier this year. It pulled back from that level but held at the April low and is making a higher low. This week it is breaking above its 50- and 200-day moving averages and a downtrend line that has been in place for a year. The relative strength indicator is crossing above its centerline, stochastics are making a bullish crossover, and moving average convergence/divergence is trending higher. Volume is still light, but Chaikin money flow is crossing above its 21-period average....174 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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