Denny’s Corporation (DENN) — This fast-food company, which engages in the ownership and operation of family-style restaurants primarily in the United States, reached a high of $6.20 in July 2005. But, for four years, it traded lower until reaching bottom at $1.15 on March 6.

On April 29, DENN was also my Trade of the Day, and I wrote, “Since then, however, volume has skyrocketed, the stock vaulted through its 200-day moving average, and then yesterday jumped through its bearish resistance line at $2.75. The stock has had a sudden move, so if you decide to play this wild speculation, use care. The trading target is $4.50 to $5.”

Now the Moving Average Convergence/Divergence (MACD) has issued a buy signal, and buying volume continues to be high.

Even though the April 28 breakout was false, it seems only a matter of time before DENN fulfills our expectations.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted at samailc@cox.net. You can also check out an archive of some of his most recent market outlooks.