Nine weeks ago, on December 13, Mike Paulenoff responded to an MPTrader member's inquiry about the relatively newly IPO'd restaurant group CAVA (CAVA Group), writing:
Fellow member "Blue" asked for a "read" on CAVA, but this is an interesting name in the restaurant group that I think warrants a more extensive chart post for anyone looking to diversify into a consumer-sensitive, budding chain of Mediterranean cuisine fast-food locations along the lines of the Chipotle (CMG) model... The $64,000 question is whether CAVA has completed a bottom pattern after a 50% correction off of its post-IPO high at 58.10 hit last August. My near and intermediate-term pattern work argues in favor of a "yes" answer to the question... Bottom Line: ...CAVA has bottomed. As long as any forthcoming weakness is contained above 35.60, I am expecting a resumption of strength in the hours ahead after CAVA digests yesterday's 25% gains... Last is 37.22...
Five days later, on December 18, Mike posted again on CAVA in the MPTrader discussion room:
Last Wednesday (12/13/23), fellow member Blue asked me to look at the Mediterranean fast-food restaurant CAVA, which was trading at 37.22 at that time. Fast-forward to today, we find CAVA following the bullish script, trading up to today's high at 42.18 so far. Purely from a pattern perspective, I think that today's early-session pullback low at 39.15 followed by a sharp upside reversal (to 42.18) started a new upleg. As long as any forthcoming weakness is contained above 39.15, CAVA points to 45-46 next, possibly in route to 51-53 (especially if the economy holds up, if rates continue lower, and if the consumer continues to look for "less expensive and faster dining experiences")... Last is 43.00...
Last week -- after multiple updates from Mike along the way -- CAVA hit a new 7-month high at 56.34 (2/15/24), up a whopping and gratifying 51.4% from Mike's original heads-up on December 13, 2023, fulfilling (and then some) the upside target windows identified in Mike's December 18 update.
CAVA reports earnings after the close on February 27. Will the stock hold its gains for another week heading into the news, or has The Street already anticipated the best imaginable report, leaving CAVA vulnerable to a "sell-the-news" reaction?
Login this week to join Mike and MPTrader members for their opportunistic intraday discussions about CAVA as well as many other individual names, sectors ETFs, macro indices, commodities, and Bitcoin during another important week of earnings (NVDA!, WMT, HD, PANW, MRO, MRNA, NEM, WBD among others).