How to understand Kona Grill Inc. (NASDAQ:KONA)?

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Shares of Kona Grill, Inc. (NASDAQ:KONA) last traded at $4.30. (NASDAQ:KONA) performance year to date is -65.74%. The 200 day simple moving average is -56.56%. The 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall long-term trend. The price level in a market that coincides with the 200 SMA is recognized as a major support when price is above the 200 SMA or resistance when price is below the 200 SMA level.

Kona Grill owns and operates restaurants in Scottsdale, Ariz.; Chandler, Ariz.; Kansas City, Mo.; Las Vegas, Nev.; Denver, Colo.; Omaha, Neb.; Carmel, Ind.; and Sugar Land (Houston), Texas. Kona Grill restaurants offer freshly prepared food, personalized service, and a warm, contemporary ambiance that creates an exceptional, yet affordable, dining experience. Kona Grill restaurants serve a diverse selection of mainstream American dishes as well as a variety of appetizers and entrees with an international influence.

Kona Grill, Inc. (NASDAQ:KONA) has been in the news for all the right reasons. Kona Grill, Inc. (NASDAQ:KONA), an American grill and sushi bar, reported financial results for the first quarter ended March 31, 2017.

The Barchart Technical Opinion rating is a 96% Sell with a Strongest short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators fully support a continuation of the trend. The market is in highly oversold territory. Beware of a trend reversal.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 4.57 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 5.87 is also higher than the current trading price depicting a bearish trend overall..

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 27.46 suggesting a bearish price action.

Kona Grill, Inc. (NASDAQ:KONA) is all set to announce its earnings on May 08/a. As per Zack’s analyst ratings, Kona Grill, Inc. (NASDAQ:KONA) currently has an average brokerage rating of 1.86. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:KONA) is $9.583 with a high of $17 and a low of $7.

As such, while we believe Kona Grill, Inc. (NASDAQ:KONA) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

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