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ChristopherCarrollSmith
Jun 14, 2019 4:44 PM

Darden to make modest gains pre-earnings Long

Darden Restaurants, Inc.NYSE

Description

Darden Restaurants (DRI) is on the lower side of its upward-sloping diamond pattern and thus likely to make some modest gains leading up to earnings on June 20. Working as an upside catalyst is Darden's 1.6% earnings surprise prediction from Zacks. 1.6% isn't a huge ESP, but the market reacts well to any positive ESP number. You may want to sell off your position ahead of earnings, however, because Darden is near all-time highs and the market will heavily punish it if earnings disappoint.

As always, this is just an idea about how the market will move, not investment advice.
Comments
ChristopherCarrollSmith
Darden broke downward through trendline support this morning. That doesn't bode particularly well-- it suggests investors are pessimistic ahead of earnings despite a positive Earnings Surprise Expectation from Zacks.
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