LOCO Should I Buy

LOCO is not a good buy right now. The stock is sitting just below near-term support with bearish momentum (MACD worsening) and no fresh catalysts or proprietary buy signals to justify an impatient entry. It can bounce from oversold levels, but the current setup favors waiting rather than buying immediately.

Price/levels: LOCO closed at ~10.16, trading below the S1 support (~10.27). Next notable support is S2 (~9.96). Overhead, the pivot (~10.77) is the first level it must reclaim to stabilize, then resistance at ~11.27. Momentum: MACD histogram is negative (-0.0973) and expanding downward, signaling bearish momentum is strengthening. RSI: RSI(6) ~22.5 is effectively oversold (despite the provided note calling it neutral), which can produce short bounces, but oversold alone is not a buy trigger when MACD is still deteriorating. Trend: Converging moving averages suggest compression/transition, but with momentum currently pointing down, odds favor more chop-to-down before a sustainable reversal. Pattern stats: Similar-pattern expectation is muted (roughly small upside over week/month), which doesn’t offset the current negative momentum.