Will Shake Shack Investors Get Burnt?

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Shares of Shake Shack ( SHAK) gapped higher Tuesday on the heels of reporting a 20% jump in sales in the holiday quarter. Let’s check out the charts and indicators before we get any closer to dinner.  
In this daily bar chart of SHAK, below, we can see a sharp move higher. Prices could well close at or near the highs of the day and have carryover strength on Wednesday. Very strong volume can be seen in early November and those buyers have continued to hold those positions with the On-Balance-Volume (OBV) remaining steady. The Moving Average Convergence Divergence oscillator is quietly turning higher and may even soon give us a buy signal. 

In this weekly Japanese candlestick chart of SHAK, below, we can see some lower shadows below $70 and that is encouraging. Prices are still in a downtrend below the declining 40-week moving average line. The weekly OBV line is pointed one and the MACD oscillator is bearish. 

In this daily Point and Figure chart of SHAK, below, we can see a potential upside price target in the $106 area. 

In this weekly Point and Figure chart of SHAK, below, a downside price target is displayed.   Bottom line strategy: I am not convinced that I should chase SHAK here, but I will consider buying a pullback.