Del Frisco's Restaurant should undergo some profit-taking after the rebound in recent sessions.

The fundamentals remain very fragile. With a P/E ratio at 30 for 2013 and 20 for 2014, the security seems highly overvalued compared to other securities in its sector. The EPS revision dropped significantly during the year, from 0.97 to 0.72.

Technically, the security could run out of steam close to the USD 21.8 resistance. Indeed, the stock is moving in an upward trend in the short term but it could know a halt. In this context, the downward movement could improve and we could expect a return to USD 19.6. Indicators that show an overbought situation confirm this scenario.

The upward movement seems limited as shown by fundamentals and technical configuration. In contact with the USD 21.8 resistance, a movement of consolidation could return the stock towards the USD 19.6 mid-term support. As a result, the most aggressive investors could take a short position near USD 21.8 but they need to set a stop loss above this resistance because the crossing of this level would invalidate our scenario