ChristopherCarrollSmith

Darden to make modest gains pre-earnings

Long
NYSE:DRI   Darden Restaurants, Inc.
Darden Restaurants (DRI) is on the lower side of its upward-sloping diamond pattern and thus likely to make some modest gains leading up to earnings on June 20. Working as an upside catalyst is Darden's 1.6% earnings surprise prediction from Zacks. 1.6% isn't a huge ESP, but the market reacts well to any positive ESP number. You may want to sell off your position ahead of earnings, however, because Darden is near all-time highs and the market will heavily punish it if earnings disappoint.

As always, this is just an idea about how the market will move, not investment advice.

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