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TXRH — Oversold Bullish Reversal
Status: Invalidated
Scanner score: 45.0/100
Why this was flagged
TXRH was identified as a bullish technical setup based on the Oversold Bullish Reversal pattern. The scanner found a score of 45.0/100 using trend alignment, momentum, price action, volume, and risk-management rules. Monitor update: Latest stored daily low of 177.3300 reached or fell below stop loss 177.4975.
Trade framework
Position-sizing example
These examples use the distance between the reference entry and stop-loss. They do not account for commissions, slippage, taxes, overnight gaps, or your personal account size.
Exit plan
- Stop-loss: Exit if the stop-loss is reached. Do not move the stop farther away to avoid taking the planned loss.
- Target 1: Consider taking partial profit when Target 1 is reached and reducing risk on the remaining shares.
- Target 2 or trailing exit: Consider closing the remaining position at Target 2, or use a disciplined trailing stop only if the trend remains strong.
- Time exit: Reassess or close a trade that fails to progress within the suggested holding window.
Technical chart
Daily closing price with moving averages and planned trade levels. This chart is a screening aid, not a guarantee of future results.
$1,000 educational outcome examples
These examples use a $1,000 position and fractional shares at the midpoint of the entry zone. Actual results can differ because of market gaps, fills, spreads, commissions, taxes, slippage, and changing conditions.
Easy explanation for new investors
Texas Roadhouse, or TXRH, caught the scanner's eye. It uses a pattern called "Oversold Bullish Reversal." This means the stock price dropped a lot recently. The scanner looks for when a stock is "cheap" relative to its recent past. The Relative Strength Index, or RSI, is a tool that measures speed. An RSI of 20.46 is very low. This suggests the stock may have been sold too much. Also, the volume was 1.64 times the usual amount. High volume means many people were trading. The scanner also saw a "bullish engulfing" candle. This is a chart shape showing buyers are stepping in. The scanner gave this setup a score of 45 out of 100.
What the price plan means
The plan has a watch status. The entry zone is between $181.05 and $182.17. If the price goes there, it is the start point. The stop-loss is $177.50. This is the price where you cut losses to limit damage. The first target is $188.16, and the second is $191.71. The risk-reward ratio is 2. For every dollar you risk losing, the plan aims to make two dollars in profit. The setup expires in September.
What could make the idea fail
This is not a promise. Stocks can fall further. The RSI might stay low. A high volume does not always mean the price will rise. The stop-loss is below the entry. If the price hits $177.50, the idea fails. The score of 45 is average. It is not a perfect score. Many other factors can change prices quickly.
Important reminder
This is educational text, not advice. Do not buy or sell based on this. A scanner looks at past data. It cannot predict the future. Always check the expiration date. Markets can be risky. Talk to a professional before moving money. Use stop-losses to protect your capital.
Recent news context
This automated review is separate from the technical score. It summarizes recent related articles and does not predict price movement.
Overall context: Caution (High confidence)
Texas Roadhouse (TXRH) shares have declined 12.9% in four weeks, reaching an oversold technical state with an RSI of 26.49, prompting some analysts to suggest a potential reversal. While fundamental data shows 11.1% year-over-year revenue growth and an $1.85 EPS, recent news is mixed. Multiple institutional investors increased their holdings, supporting a consensus "Moderate Buy" rating and price targets around $209. However, bearish analysis indicates the stock may be overvalued, with a 31.1x P/E ratio exceeding industry peers. Additional risk factors include notable insider selling and future earnings pressures. Current price is $181.05, while average analyst targets range from $208.48 to $209.40.
Potentially supportive context
- Recent quarterly results showed 11.1% revenue growth year-over-year and $1.85 EPS, exceeding expectations.
- Institutional investors, including UBS and Canada Pension Plan, increased their stake, maintaining 94.82% institutional ownership.
- Analysts maintain a consensus "Moderate Buy" rating with average price targets ranging from $208.48 to $209.40.
Risks and caution items
- Recent articles report insider selling in the company.
- Valuation concerns persist, with a 31.1x P/E ratio considered above hospitality industry averages.
- Future cost pressures on restaurant-level margins may challenge premium pricing.
- The stock experienced a 12.9% decline over the last four weeks, indicating short-term volatility.
Latest reviewed article: Sep 9, 2026 1:59 pm
Recent related articles
Texas Roadhouse (TXRH) stock has recently fallen by 12.9% over the past four weeks, but indicators suggest it is now in oversold territory. The stock's Relative Strength Index (RSI) is 26.49, signaling a potential reversal, and analysts have raised earnings estimates for…
AXQ Capital LP significantly increased its stake in Texas Roadhouse, Inc. by 98.7% in the second quarter, bringing its total holdings to 10,829 shares valued at $2.09 million. This move is part of a broader trend of high institutional ownership in Texas…
UBS Asset Management Americas LLC significantly increased its stake in Texas Roadhouse (NASDAQ:TXRH) by 81.1% in the second quarter, now holding 218,773 shares valued at $42.3 million. This move comes as Texas Roadhouse surpassed earnings and revenue expectations, reporting $1.85 EPS and…
Corient Private Wealth LP recently acquired a new stake of 11,142 shares in Texas Roadhouse, Inc. (NASDAQ:TXRH) worth approximately $2.15 million during the second quarter. This move is part of a broader trend of institutional investment, with such entities collectively owning 94.82%…
Texas Roadhouse (TXRH) stock has seen a significant 129.5% increase over the past five years, but current valuations suggest it is now looking expensive. While a Discounted Cash Flow (DCF) model indicates the stock is approximately fairly valued at around $192-$195 per…
Van ECK Associates Corp increased its holdings in Texas Roadhouse, Inc. by 18.4% in the second quarter, acquiring an additional 9,627 shares, bringing their total to 61,904 shares valued at $12.0 million. Texas Roadhouse exceeded earnings expectations, reporting $1.85 EPS and $1.68…
Jupiter Topco LLC has acquired a significant stake in Texas Roadhouse, Inc., purchasing 29,651 shares worth approximately $5.73 million in the second quarter. This move comes as institutional investors and hedge funds now collectively own nearly 95% of the company. Analysts maintain…
The Canada Pension Plan Investment Board acquired 6,600 shares of Texas Roadhouse, Inc. valued at approximately $1.275 million in the second quarter of 2026. This move comes as Texas Roadhouse exceeded quarterly earnings expectations and declared a dividend of $0.75 per share,…
Important: Some returned articles may describe competitors, industry conditions, or related companies. Open the source before relying on an article.
Scanner confirmations
- Current volume is at least 1.25x the 20-day average volume.
- RSI is near oversold territory with bullish candle confirmation.
- Bullish engulfing candle detected.