Still Smelling Higher Prices in Panera

 | May 06, 2013 | 8:30 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


A trade setup in Panera Bread (PNRA) has already triggered a buy entry against a key support level. But, since the stock has not yet met the upside targets, we still have reason to consider another buy-side entry.

Panera (PNRA) -- Daily
Source: Dynamic Trader

The original trade setup was a simple symmetry (or "measured move") setup -- the stock had declined $16.09 to an April 24 low, quite similar to a prior pullback of $15.94, as illustrated on the daily chart. That prior move suggested a low around $169.73, and the actual low came in close by -- at $169.58 -- on April 24.

With the stock on the rise once again, the initial upside target is about $190.05, and that level is still above Friday's closing price of $180.84. Given this, I would still like to buy Panera on a pullback. We should also be aware of another old target -- $188.61 -- that comes from a prior larger swing, as the stock may shoot for that level as well.

As mentioned, a trigger for a swing trade already fired off around April 30. Besides the original setup, several factors support a continued rally. First, daily and weekly charts show general pattern of higher highs and higher lows. Second, the price is clearly above both the 200-and 50-day simple moving averages on the daily chart -- and, third, the five-bar exponential moving average has crossed back above 13-day EMA on the daily chart. Bottom line: I like Panera for higher prices.

Panera (PNRA) -- 30-Minute
Source: Dynamic Trader

In order to keep an edge regarding another entry, you should ideally wait for a pullback to the last swing low on this 30-minute chart. Right now the pullback zone is between $173.95 and $176.83. The maximum risk on this setup can be defined below the April 24 low, though you can use a tighter stop if that suits you better.

For more information about trades and triggers, please refer here.

Columnist Conversations

We will take off some more risk, bank some winners SOLD PG OCT 90 CALL AT 3.3 (in at 2.90) ...
After a very calm and sedate period of volatility which saw the VIX fall not only to all time lows but had a r...
today is a good day to lighten the load and take some positions off the table. SOLD WB OCT 85 CALL AT 11 (i...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.