Dave & Buster's Entertainment Inc. (PLAY) is scheduled to report their latest quarterly figures on Tuesday before the market opens. In full disclosure I visited the Dave & Buster's near Times Square in New York City and my wife and I had a good time many years ago. Let's see if that positive experience extends to the charts and indicators.
In the daily bar chart of PLAY, below, we can see that the big-picture trend of the shares has been sideways for the past 12 months. Buying interest has developed in the $32-$30 area a number of times with late May being the most recent experience. Prices recently rebounded to the underside of the 200-day moving average line but are well below the declining 50-day moving average line.
The trading volume did not insignificantly increase in late May as prices jumped so I am taking the recent strength with some skepticism. The daily On-Balance-Volume (OBV) line shows some "interesting" movement. First, we can see that the line has risen from August even though prices have moved sideways. Second, we can see that the OBV line has moved sideways from early April as prices weakened. If the OBV line is correct that buyers of PLAY have been more aggressive while prices have declined it means that either they have a strong conviction about the stock or they could be very disappointed if prices break down below $30.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory but a cover shorts signal can be seen in late May.