On January 2, 2026, this is what I posted about CAVA (Cava Group Casual Mediterranean Cuisine) to MPTrader members:
After CAVA's meteoric climb from 29.00 in October 2023 to an ATH at 172.65 in November 2024, the stock rolled over into a relentless decline that hit its low at 43.41 on 11/20/25, amounting to a 75% reduction in price value! Tariffs, inflation, competition, scarcity of some product-- and who-knows-what-else clobbered the stock for 12 months, HOWEVER, if my work is reasonably accurate, CAVA has seen the worst, and as we speak, already is in the grasp of a budding new bull phase. I think it is worthwhile to own a position in this "affordable" and health-conscious Mediterranean cuisine restaurant chain just as we enter a period when the tax benefits of the Big Beautiful Bill kick in, putting additional spending money in people's pockets while strengthening the underlying economy (hopefully). My attached Big Picture Daily Chart argues strongly that CAVA's stair-step advance from a multi-year low at 43.41 to the 12/24/25 high at 62.16 exhibits bullish form that is a pre-condition for the development of a larger bull phase that initially points to a challenge of multi-month resistance from 66.70 to the 200 DMA, now at 72.72, which if (when) hurdled, will trigger a second upside target zone of 74 to 84... Last is 60.90...
Fast-forward across multiple postings to last week's (4/20/26) update:
One of [my] our Baker's Dozen Best Technical Setups entering 2026 (60.90 when I first posted CAVA on 1/02/26) has been a stealthy, powerful performer so far this year. In fact, from the time I posted the first update in early January 2026 at 60.90, CAVA has climbed to today's high at 97.57 (as I am typing this update), which amounts to a 60% advance. My attached Daily Chart shows the 8-month base-accumulation period and pattern that has taken the form of an inverted Head & Shoulders that projects to 104-108, but if taken out, then 120-127 is in the CAVA bull's crosshairs. At this juncture, a break below 91.20 will be considered a warning signal that the advance off the 11/20/26 multi-year low at 43.41 (+125%) is nearing exhaustion ... Last is 97.55...
CAVA's outstanding performance is more "economic" than AI-related, which suggests that there are some non-AI-related businesses that are prospering during H1, 2026, despite the laundry list of headwinds (tariffs, supply chain issues, war, chilly consumer confidence), which speaks to CAVA executives' execution of their business model, market share gains, and expansion plans...
On May 12, 2026, Cava management will tell us how Q2, 2026, fared and, more importantly, provide insights into 2H, 2026 for the casual restaurant sector in particular, and the increasingly discerning consumer in general.
Will CAVA's powerful uptrend pattern sustain into and in reaction to Earnings? What does the technical setup indicate about directional price expectations as the calendar flips to May this coming Friday? Join me, and MPTrader members, for our intraday, real-time discussions about setups in CAVA as well as many other individual stocks-- especially during this coming week's heavyweight technology Earnings reports-- in addition to coverage of the major stock indices and ETFs, macro indices, commodities, precious metals stocks and ETFs, cryptocurrencies and their equity proxies...
... and as always, my technical reads and chart updates for your personal portfolio requests... MJP...