Wendy’s is a name we have looked at periodically, as it teased a multi-year breakout from incredibly well-defined resistance. The casual dining and parts of the fast food space have done rather well this year, and Wendy’s is joining the party.
The $6 level has been a critical area since 2009, as you can see on the weekly timeframe, below. It would take shorts about fourteen days to cover.
Based on this chart, I would be stalking Wendy’s on reasonable pullbacks and consolidations (read: no waterfall back below $6) going forward, playing for a fresh trend higher.
As they say, the bigger the base the higher in space.
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Great call, up almost 15% since you posted!
Thanks, Kevin.
I just discovered your site and am catching up. Is it still too late to get in if I have a 6 month time frame?
Thanks again.
Wouldn’t chase it here, Kevin. Let it consolidate.
OK Will let it consolidate. Love your posts. Thanks for sharing your insights.