Will This Price Support Level Hold Once Again?

Price support is established when a downtrend ends and prices reverse back to the upside off a certain price.

Below is a chart of Brinker International, Inc. (EAT) over the past year. For the past month, every time that EAT has fallen to the 150-152 level, buyers have stepped in and supported the stock. The lowest closing price has been 151.97 on August 8th.

But EAT, after gapping higher on August 13th to test short-term price resistance and the 50-day SMA, both just above the 165.00 price level, has returned to price support and is once again testing 152.00.

Enter Brinker International, Inc. (EAT):

The next price support level that I see with multiple tests is the 123-125 level, tested back in December 2024 and again at the cyclical bear market low in April of this year.

Should EAT fall convincingly below this 150-152 area, I don't see any major price support until that 123-125 support range.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.