Chart of the Day: Where to Fill Up on Dutch Bros.

Dutch Bros. (BROS) , a new entrant in the Action Alert PLUS bullpen, shows a very strong chart pattern, especially from those October lows. With a nearly 50% move up in about three months' time, the stock was due for a breather.

Notice the change in candle color in the top pane, the GoNoGo composite of indicators. BROS moved from purple to pink to teal to blue, traversing from bearish to bullish.

The current color is teal, which is cautiously bullish. It makes sense to back off following such a strong run.

The indicators also show BROS to be slowing down, too, the money flow in pane 3, has come down to the uptrend line, still bullish, but now "less so."

The Moving Average Convergence Divergence has confirmed a roll down here, too, while the Traders Dynamic Index (TDI) indicator at the bottom, which compares where the relative strength is vs. Bollinger bands remains in bearish territory. The stock has come in and found support at the 200-day moving average, below there is even strong support at the 100-day moving average, where believe that pullback could be a nice spot to add shares.

For a closer look at the chart, click here.

AAP has no position in any security mentioned.