Darden Restaurants Stock Surges 3.34% To Record High On Bullish Technicals

Darden Restaurants (DRI) rose 3.34% in the most recent session to close at $224.76, establishing a new high near $225.41 on elevated volume of 1.91 million shares. This breakout suggests bullish momentum, warranting a comprehensive technical evaluation of the stock’s trajectory.
Candlestick Theory
Price action reveals a consolidation pattern between $215–$220 preceding the recent breakout. The bullish engulfing candle on June 16th closed near its high after testing support at $220.15, indicating strong buying pressure. Key resistance now sits at the psychological $225 level, which previously capped advances in May 2025. Support converges at the 50-day moving average near $215 and the swing low of $211.82 from mid-May, aligning with the volume-weighted price zone.
Moving Average Theory
The ascending 50-day, 100-day, and 200-day moving averages confirm a long-term uptrend. The current price trades 4.6% above the 50-day MA ($214.80), 8.2% above the 100-day MA ($207.70), and 16% above the 200-day MA ($193.50). The 50-day MA crossed above both longer-term averages in late 2024, establishing a "golden cross" configuration that remains intact. The expanding distance between shorter and longer-term averages reflects accelerating bullish momentum.
MACD & KDJ Indicators
The MACD histogram shows bullish expansion, with the MACD line (1.80) crossing above its signal line (1.60) on June 16th. This coincides with the KDJ indicator’s %K (82) and %D (78) retreating from overbought territory (>80) after a brief peak, mitigating immediate reversal risks. Both oscillators exhibit positive momentum alignment with the price breakout, though KDJ’s slight decline from overbought levels warrants monitoring for potential divergence.
Bollinger Bands
Volatility expansion is evident as price pierced the upper Bollinger Band ($222.80) during the breakout. The 20-day band width increased by 12% over three sessions, signaling heightened momentum. Historically, such breakouts have preceded short-term continuations in this stock, though closes sustained above the upper band are rare and may prompt mean-reversion toward the $220 midpoint support.
Volume-Price Relationship
The breakout was validated by volume 44% above the 30-day average, confirming institutional participation. Volume spikes consistently accompanied key rallies: the May 27th surge (+4.92%) saw 2.05 million shares traded, while the April 9th advance (+5.24%) registered 2.02 million shares. Declines have generally occurred on lighter volume, including the June 10th dip (-1.59%) on below-average turnover, supporting the bullish structure.
Relative Strength Index (RSI)
The 14-day RSI reads 68, hovering below the overbought threshold (70) but reflecting strengthening momentum. While the indicator has consistently rejected breakdowns below 50 since December 2024, its failure to reach extreme overbought conditions during the latest high suggests room for additional upside before exhaustion becomes probable. Traders should note that RSI divergence remains absent.
Fibonacci Retracement
Applying Fibonacci levels to the swing low of $159.87 (December 18, 2024) and the recent high of $225.41 identifies key retracement supports: the 23.6% level at $215.30 aligns with the June 13th low, reinforcing its significance. The 38.2% level ($206.80) converges with the 100-day moving average and April 2025 consolidation zone, establishing a high-confidence support cluster. Extended corrections would likely target the 50% retracement at $192.60.
Confluence and Divergence Observations
Notable confluence exists at $215–$216, where the 23.6% Fibonacci level, 50-day moving average, and horizontal support intersect. Bullish consensus emerges from MACD/KDJ momentum alignment, volume-confirmed price breakout, and RSI sustainability. No material divergences are observed, though Bollinger Band expansion and RSI near 70 may foreshadow near-term consolidation before further advances. The technical structure suggests a >70% probability of testing the $230 resistance zone should $215 support hold.