Holders of This Stock Could Be Over a Barrel

No doubt, Cracker Barrel Old Country Store (CBRL) is a welcome sign post along many roads to many travelers. However, I am focused on the charts of the company and not on the menu and gift shop, before their quarterly earnings release on Tuesday.

Let's check the charts and indicators.

In this daily bar chart of CBRL, below, we can see that the shares have declined in an up and down manner since last June (unfortunately the "down" got the upper hand). Prices are trading below the declining 50-day moving average line and the underside of the declining 200-day moving average line has acted as resistance several times in the past year.

The On-Balance-Volume OBV) line has been in a decline too and tells us that sellers of CBRL have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish but we can see a recent cover shorts buy signal.

In the weekly Japanese candlestick chart of CBRL, below, we see a bearish picture. Prices are in a downtrend below the negatively sloped 40-week moving average line. There are no bottom reversal patterns visible to suggest a low has been seen.

The weekly OBV line made a high in March 2021 and has continued to decline well into 2022. The MACD oscillator is bearish.

In this daily Point and Figure chart of CBRL, below, we can see the price decline and a potential price target in the $81 area.

In this weekly Point and Figure chart of CBRL, below, a target in the $55 area is being projected.

Bottom-line strategy: Many restaurants are struggling with higher labor, rent, and ingredient costs while customers struggle with shrinking disposable income to budget for dining out. The charts and indicators of CBRL are pointed down and while I have no special knowledge of what the company will report for earnings I would avoid the long side.

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