Casual dining stocks have just been on fire over the last 6 months. All are trending higher and making it hard for a technical trader to find an entry. So when one pulls back it is time to take notice. Bloomin’ Brands, (NASDAQ:BLMN), is one of those names. They are the parent company to Outback Steakhouse, Bonefish Grille and Fleming’s among others, and make a killer bloomin’ onion.
The chart above shows the trend higher since August in this name. Nothing fancy here, it just goes up. Most importantly for the technical trader watching this space is the last two weeks. Over this period it made a short term top and started to pullback. The touch at the rising trend line as support last week is the reason to get ready. You can see that this trend is closely following the 20 day SMA higher. The bounce higher yesterday confirms the the short term trend changed higher again and gives an entry signal. For this name, sticking with a stop the whole dollar value below the trend line seems like a good plan. I bought some against 24 as a stop.
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