Food Services Stock Off To The Races After Lower Inflation Print?

Stocks surged on the back of the news that CPI came in at 4.9%, its lowest level in two years, giving the market a second wind to perhaps finally breakout of the consolidation are we found ourselves in. As of now, this news has been seen as extremely bullish, however, the only question now surrounds follow through. Will this be enough to continue to push stocks higher for the rest of the week and beyond?

At this current moment, the sentiment should remain bullish as much of the market sees this as possibly having a ripple effect, mainly, giving the Fed a reason to pause the rate hikes, and perhaps, even a reason to cut rates sometime later this year. One thing is for sure, there is cause for optimism with progress being made in the fight against record inflation.

For our stock pick today, Aramark (ARMK), we saw a pop after earnings that sent the stock surging toward an upper band of resistance. With this softer than expected CPI print, that could just be what the stock, as well as all other stocks, needed in order to continue a march higher.

As you can see in the video below, the stock had been forming an ascending triangle for quite some time, and now, with the catalyst of CPI, we can responsibly expect to see prices continue to move higher. However, this doesn’t mean that we should necessarily jump in with both feet. Looking for a good entry is still key to putting on a good trade.

Even though sentiment seems to be overwhelmingly bullish at the present moment, try to see if the stock gives any sort of pull back if it, in fact, breaks to the upside. Discipline will serve you well in this trade. Keep an eye on this stock in order to find out where that better entry might be.

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