Shake Shack (SHAK) has run away on the upside since September. Prices exploded on the upside earlier this month. A big gap or price void with big volume. The question now is not whether you want to order but whether you should take some money off the table. Let's check the menu and the charts.
In this daily bar chart of SHAK, below, we can see that prices have just about doubled from September. SHAK is above the rising 50-day and 200-day moving average lines. The daily On-Balance-Volume (OBV) line has been positive the past twelve months and tells us that buyers of SHAK have been more aggressive. Prices have been holding in a tight range in the $57-$60 area. This could be a bullish pennant pattern and prices could surge higher by another five or six dollars which is the height of the pole. However, the slow stochastic indicator is correcting from overbought readings and I suspect prices will also retreat.
In this weekly bar chart of SHAK, below, the price gap disappears and a large base pattern shows up. SHAK is above the rising 40-week moving average line. The weekly OBV line shows a long base pattern as well. The weekly slow stochastic is as well in overbought territory but it has not turned down.
In this Point and Figure chart of SHAK we can see a longer-term price target of $100. Prices could get there but some sort of correction or pullback is likely before renewed gains.
Bottom line: SHAK is likely to make some sort of pullback before new gains. Maybe down to $54 or $52 or even $50. I try not to shop hungry and I don't think I need to pay up to get long SHAK