In a nutshell
P.F. Chang's China Bistro/PFCB is a member of the still-favored Restaurant sector. This particular group has been very steady despite the market weakness, showing near term RS as well. (Imagine that... I suppose a perception such as this one represents 'news' to most investors! - dmg) PFCB is one of the better-looking stock charts in the sector, as evidenced by its overall positive trend and excellent Relative Strength. This is summarized by its 5 for 5'er positive technical attribute reading. PFCB is currently on a bullish catapult formation, and was able recently to go to new highs. The bullish price objective is 73-77, so this recent pullback to the 58 area improves the risk-reward for PFCB as a long play. Initial support lies at 57, which is also the middle of the ten week trading band. Below that is even more substantial support around the 53-54 range. Those looking for a new long idea after this recent market pullback can consider buying PFCB here (57-59 range). A first breakdown (double bottom) would come at 56, so those traders very short term oriented could consider this as their stop loss point, but ideally we prefer to give PFCB a little room and would use 51 as the initial stop loss point, as that would break the January-March support and violate the bullish support line.