$blmn Bloomin Brands Trendline break
Stock has broken downtrend
Indicators all very bullish amd in reversal
Target price 22.73
Stop loss 21.21
Concerns regarding impact on asian Business due to Coronavirus.
BLMN trade ideas
Take Away: Restaurant Spending Continue to DeclineSeptember's retail sales increased less than expected, partly due to the 1.8 percent decline in restaurant spending. This was the worst decline since 2016. Partly blamed on Hurricane Florence, that static is likely to be tuned out and the trend of mean reverting to continue after Q2-18's record $3.5B in sales - the strongest in almost 30 years.
BLMN is expected to report earnings of .07 cents on October 29, but we should focus on the reality that comps are likely to disappoint following such a great second quarter. We're seeing weakening comps in strong companies like DPZ and DRI.
Moreover, Bloomin' has board & mgmt issues that remain unresolved.
I believe their is more of a macro play to restaurants, though. Real consumer spending has outpaced real disposable income two of the last four months, but there has been little movement in disposable income. Furthermore, food and beverage spending has followed both the trajectory of U.S. inflation and growth gains since the 2016 election.
Q4-18 could be a difficult one for U.S. consumers and restaurant spending could decline in order to fund other consumption.
Earnings matter, but this is a trend call.
BLMN Long to $19ish. Low risk entry. BLMN looks like its about to bounce off of long term support at $17 that's reinforced by both long term and shorter term trends. It looks as if the recent catalyst for this selloff was earnings but I doubt it breaks below the $17 level. My bet says it bounces around in this area a bit before running up again to the last big resistance level around $19 by the end of the year. Last candle on the daily chart was a possible reversal hammer so I'd wait for confirmation of reversal before entry, but then set a stop loss at $17 and enjoy the ride! Seems like a very low risk entry here.
BLMN - Old resistance becomes supportWatching the old resistance area becoming support. Also the confluence of the 50SMA might make a good bounce area. No position yet but set alerts for potential trade
Testing or breaking flag to the upside into earnings add a Feb 25/22.5 PS short Mar 27.5 Call as a collar to long positions for about 15c
BLMN - How about a holiday run?Low volume is looking sad. The EMA’s are headed higher with some separation between them. The SMA’s are level which wouldn't be bad for a move higher. Stochastics are overbought with a little room to move higher if needed, RSI is overbought as well but not comical yet and MACD is looking indecisive making this trade look slightly gloomier.BB still separated because of the gap higher a couple weeks ago. ADX is edging higher over 40. R:R 1:2 (sorta).
I'll pass, but it was on the list for this week.
Trigger (close) $22.73
Stop is $20.45
Target is $26.80.
