Noodles & Company
Panjang

Long Entry on NDLS Breakout

80
NDLS is setting up in a textbook breakout pattern.

After climbing 323% off from the COVID lows, Noodles began forming a large consolidation base. Profit taking resulted in an acceptable 26% retracement, followed by successively shallower dips that ended in a tight 6% range.

The small-cap restaurant chain saw earnings turn positive last quarter and sales increased by a robust 57%. The company is worth just $599 million as of October. Not to mention, shares traded above $50 after the IPO. So, there is plenty of upside left on this one.

I'm looking to buy a move above $13.35 with a stop at $12.55.

Penafian

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