I reviewed the charts of CAVA Group CAVA on November 17 and wrote that "Recent IPOs are always a problem for technical analysts who like to see a lot of price history. CAVA has mixed charts so I am not in a rush to recommend a long position."
The charts of the Mediterranean culinary brand that offers chef-crafted dips and spreads have both aged and improved so let's check again. In this daily bar chart of CAVA, below, I can see that prices have rallied above a small two month base pattern. CAVA trades above the rising 50-day moving average line.
The On-Balance-Volume (OBV) line has jumped to the upside telling us that buyers of CAVA have recently become very aggressive. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of CAVA, below, I can see that the price action has shifted to the upside in the past two weeks. CAVA saw a big surge in volume two weeks ago. The weekly OBV line turned higher and the price momentum study is now positive.
In this daily Point and Figure chart of CAVA, below, I can see an upside price target in the $61 area.
Bottom line strategy: Traders could probe the long side of CAVA on a pullback to the $40 area. Risk to $35. The $61 area is my price target.
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