Shake Shack On The Way Back, Up 8% In The Past Week

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Shake Shack Inc SHAK shares were trading higher by $3.21 (6 percent) at $56.15 in Monday's session. It has now rallied over $7 since it bottomed at $48.21 last Thursday.

That capped a decline of nearly $50 when the issue peaked on May 22 at $96.75. That high was put in place after the issue bottomed a month after its IPO on February 17 at $38.63. Most of the decline has taken place since June 2, when it rebounded off its initial plunge to $71.20 with a one-day rebound to $83.

The decline off that level finally ended last week when a double bottom was put in place with the lows from July 15 ($48.25) and July 16 ($48.21). So far, the recent rebound has reached $56.67, before falling back to the $56 level.

That current intraday high coincides with its July 7 high at $56.35. Above that area, the next resistance point may not come in until its pair of highs from July 2 ($60.80) and July 6 ($60.50).

The latest move by Wall Street analysts was made on July 9 by Goldman Sachs who downgraded the issue from Neutral to Sell. It was only five days later the recent low was put in place before the snapback rally.