Shake Shack Makes New All-Time High
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Shake Shack Inc (NYSE: SHAK) shares were trading higher by $2.39 (4.7 percent) at $52.18 in Monday's session. With no relevant news out on the burger purveyor, let's take a look at technicals to explain the explosive price action.
After debuting on January 30 at $47, it reached $52.50 on its inaugural day of trading before falling to settle at $45.90. With no follow to the upside the over the next few days, it drifted lower before making its all-time low on February 17 at $38.63.
From that level, it rallied back to the $47 level and had a mixed reaction to its better-than-expected first earnings report. In a volatile session following the earnings report, it declined from its March 11 close ($46.90) to $42.08 intraday but ended up rallying to close at $47.79.
That low provided the foundation for the rally to new all-time high in today's session at $52.70, $0.20 above its former all-time high. If the issue can maintain its current gains, it will post a new all-time closing high if it can close above its April 7 close ($50.48).
Image credit: m01229, Wikimedia
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