Shake Shack Inc Drops Again, Here’s The Trade
Leading restaurant stock, Shake Shack Inc (SHAK), has been coming under selling pressure since early 2021. On January 27th, 2021, the popular restaurant stock traded as high as $138.38 a share. Since that major top, the shares have declined below their 200-week moving average and now trade at $67.02 a share. This puts the chart in a weak technical position and usually signals lower share prices ahead. Obviously, many restaurant stocks have been battling the covid-19 rules in different states and this could continue to weigh on the share price in the near term.
The next major support level for the stock will be around the $55.00 level. This key support area is where the stock broke out in August 2020. Often, when a stock pulls back from such a high share price it will be defended around the next prior breakout level. There are also a couple of other supporting factors around the support area making this a very attractive long side trade when tested.
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