DTT Buzz
Exclusive Market Analysis, Alerts and Commentary from the DaytradeTeam trading staff
Friday, April 11, 2008
Where's The Beef?! A Look At Wendy's Intl (NYSE:WEN)
Wendy's Intl (NYSE: WEN) was flying high a year ago. Since then, the stock has reversed course, and is now stabilizing on support at approximately 22.75 after a large downside trend.
The 6 month chart reveals potential for another leg to the downside. A descending triangle is in the works on, which indicates continuation to the downside after a period of consolidation. Check out the chart below...
The yellow lines on the chart outline the descending triangle. If WEN breaks the support line of approximately 22.75 on strong volume, WEN is likely to push further to the downside. The measured move in this case takes WEN to around 19.00...a pretty big bite out of "The Baconator."
I'll be watching the support line for a break. If the break takes place, I'll likely short WEN with a stop at 23.83, and a target at 19.00. I'll keep a close eye at the psychological barrier of 20 in the event I enter the trade. Reason being, 20 has potential to provide solid support regardless measured move suggesting a push to 19.00.
Happy Trading,
Nick Fenton
Sr. Trade Analyst
p.s. - Call 866-232-9872 and request a 30 day ($49.95) or 14 day ($14.95) trial to our Premium Service today!
The 6 month chart reveals potential for another leg to the downside. A descending triangle is in the works on, which indicates continuation to the downside after a period of consolidation. Check out the chart below...
The yellow lines on the chart outline the descending triangle. If WEN breaks the support line of approximately 22.75 on strong volume, WEN is likely to push further to the downside. The measured move in this case takes WEN to around 19.00...a pretty big bite out of "The Baconator."
I'll be watching the support line for a break. If the break takes place, I'll likely short WEN with a stop at 23.83, and a target at 19.00. I'll keep a close eye at the psychological barrier of 20 in the event I enter the trade. Reason being, 20 has potential to provide solid support regardless measured move suggesting a push to 19.00.
Happy Trading,
Nick Fenton
Sr. Trade Analyst
p.s. - Call 866-232-9872 and request a 30 day ($49.95) or 14 day ($14.95) trial to our Premium Service today!
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