APPB - Applebee's International $44.05 +0.32 (+1.16)

Thursday's Comment:

Applebee's continues to hug its 10-dma. Better yet, it's starting to advance off it. After moving in tandem with its 10-dma over the past two weeks, APPB broke out yesterday to put some distance between itself and this important level of support. In fact, with today's close, APPB has put $0.82 worth of space between it and its 10-dma at $43.22. APPB has been in a strong up trend since March 1st. Moreover, we think APPB could build on this trend into its split-payable date scheduled for June 12th. To that end, ABBP posted a new all-time closing high today of $44.05. At this point, APPB has no immediate overhead resistance (though the psychologically-significant $45.00 level could present a minor obstacle). As for support, APPB has the aforementioned 10-dma followed by the 20-dma at $42.46. Traders considering a position in APPB should look for a move through today's intra-day high of $44.35 or a bounce off the 10-dma on volume of 150,000 shares traded by mid-day. One caveat for conservative traders, though, APPB's stochastic is showing it to be overbought, so this trade could carry a little more risk than usual.

Picked on May 15th @ $43.20 Change since picked +0.85 Stop Loss @ $40.50

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