Extreme Option Profits Chart of Day… Shake Shack (SHAK)

With a good deal of patience, we expect to see a recovery in shares of SHAK. We believe the pullback was a severe overreaction that has now left the stock deep in oversold territory following the company’s earnings disaster, and on news that it will temporarily shut down locations in 2020 for store upgrades. 

Technically, the stock has become aggressively oversold, holding support dating back to May 2019.  Not only is it oversold at its lower Bollinger Band (2,20), RSI, MACD, and Williams’ %R are also over-extended. Going forward, we’d like to see a bearish gap refill around $85.

This is just one of the opportunities we find quite often inside Extreme Option Profits.

PS. Be sure to come back Thursday for our next Chart of the Day!