Fast food company Wendy's (WEN) made a price low on the charts back in May and has rallied the past seven months. Prices are back to the $24-$25 area which represents resistance for the past two years. Can shares of WEN finally breakout on the upside or will prices retreat again? Let's check.
In this updated daily bar chart of WEN, below, I can see an uptrend still in force. Prices trade above the rising 50-day moving average line and above the now rising 200-day line.
The On-Balance-Volume (OBV) line has been moving up from May to confirm the price gains and tell us that buyers of WEN are acting more aggressively than sellers.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has crossed to the downside for a take profit sell signal.
In this weekly Japanese candlestick chart of WEN, below, I see a mixed picture. Prices are currently in an uptrend as they trade above the rising 40-week moving average line.
The weekly OBV line shows improvement from May but it is still below its earlier 2022 high. A breakout to a new high on the OBV line would be a good sign if it happens.
The MACD oscillator has crossed above the zero line for an outright buy signal.
In this daily Point and Figure chart of WEN, below, I can see that the software is projecting a potential upside price target in the $32 area.
In this weekly Point and Figure chart of WEN, below, we can see a longer-term picture but the same price target in the $32 area.
Bottom line strategy: While shares of WEN are in an uptrend and most of the indicators are positive I have yet to see trading volume expand to the point that gives me confidence we'll see an upside breakout.
