04/24/00 Lone Star Steakhouse (STAR)
Points to watch:
Lone Star has built a solid base over
the past 19 months and now looks ready to break out to the upside.
On Wednesday the stock moved above
resistance at 10-10.25, a level which had stopped several rally attempts
since last June. On Thursday STAR jumped 2.31 to close at 12.75, its high
for the day and its highest close since July 1998. The stock broke
above resistance at 11.75 on Thursday (the 1999 high set last April), and
ended the day even with the 38% retracement of its 3/98-9/98 decline.
Short and long term technicals are solid
and improving: daily and weekly MACD, RSI, and stochastics are all rising.
Daily OBV is at a new high and Money Flow is rising.
A buy signal would be given on a break
above Thursday's close of 12.75, with the next upside resistance levels
then coming at 16.2-16.9, 18, and 19.6. Support is at 11.8 and
10.2.
