12/20/99 Lone Star Steakhouse (STAR)
Points to watch:
One to watch in the coming days for
a long term buying opportunity. Star has built a solid base over the
past 14 months. The stock jumped nearly 50% last
Thursday/Friday, moving above its 55 day moving average on Thursday, and
crossing above its 200-day moving average on Friday for the first time
since July 23rd. The stock closed on Friday at 9.06, its highest
close since July 22nd.
Technical indicators have begun to
improve: both daily OBV and RSI turned up sharply two weeks ago and are
rising fast.
We would wait to buy the stock until it
breaks above resistance at 11.75, its 52-week high set on April 5th.
On a break, the next significant upside resistance would be at the 1997
lows at 16-16.3. Support is at 8, and 6-6.5.
