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Panera Bread Co. (PNRA -$0.86 or -1.41% to $60.04) tested its 50-day moving average line today, the first test of that important moving average since it was featured in the CANSLIM.net Mid-Day BreakOuts Report at $61.86 on May 23rd (see here).  It traded up as much as +7.48% in the interim.  On May 31st (see here) it was included in this "Featured Stock Update" section with cautionary remarks that "it has progressed now to a level more than 5% above its prior chart highs, thus it is past the most ideal buy point" and the suggestion that "on any ordinary pullbacks, prior chart highs should now be a support level." 

In the DailyGraphs® screenshot below you will notice that PNRA's gains lacked volume as it rallied to set several new highs in June. The stock endured one high-volume down session, however the rest of its losing sessions have also lacked intensity, which is good.  The action appears to be the normal, quiet kind of consolidation that one usually would expect in a healthy stock.  Provided that PNRA fights to stay above its 50 DMA and remains above prior chart highs in the $59 range, investors who may own the stock would have little to be concerned about from a technical perspective.  Those who might look to buy as the stock tests support should definitely limit losses at no more than 7%, however the abovementioned technical violations could be sufficient "sell signals" worth following even before that 7% loss threshold is reached.  Obviously concern would increase greatly upon any high-volume losses leading to technical violations of key chart support.

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