CKE Restaurants (CKR)

Company

CKR 1-year chart CKR 2-month view

"CKE Restaurants, Inc. (CKE), through its subsidiaries, franchisees and licensees, operates some of the most popular U.S. regional brands in quick-service and fast-casual dining, including the Carl’s Jr.®, Hardee’s®, La Salsa Fresh Mexican Grill® and Green Burrito® restaurant brands. The CKE system includes more than 3,200 locations in 43 states and in 13 countries." (company website)

CKR 6-month chart
CKR 1-year view

Buy

CKE Restaurants has given up most of its 2007 gains, but seems to be holding around the 50-day moving average, even after the market correction of 27-Feb.

  • Price momentum (PPO) — was picking up but has taken a hit
  • Trend (ADX) — still strong, although weakened by the correction
  • Money flow (CMF) — still a modest inflow
  • Relative strength (RSI) — dipped to just below neutral
  • Volume — steady at around 700K shares/day

Based on technical analysis, MarketEdge calls CKR a "hold" in with "mild deterioration" in the chart.

Sell

gain Bottom line
16%

CKR just set a new 52-week high and is beginning to show a bit of weakness in the chart: momentum (PPO) and buying pressure (+DI) are both slowing. Although CKR has stood up well in this week's sour market, this seemed time to take a handsome profit. I suspect there will be another down-cycle and I expect to jump back in when it's over for the next ride up.