Today’s new idea comes from Michael Burke and John Gray at Investors Intelligence. Visit their website if you’d like more information on how to read the point and figure (P&F) relative chart in the recommendation below.
“Small-cap Buy Idea: Red Robin Gourmet Burgers, Inc. (RRGB, $42) is consolidating just beneath its February high, its best level since 2006. The trend is up and the present pause for breath should be seen as an entry opportunity.
“The P&F relative chart is in good shape as it rallies towards the highs from 2009 and 2011. Breaking through that resistance band would open the door to further bullish potential.”
- Michael Burke and John Gray, Investors Intelligence, February 22, 2013