For his "Executive Decision" segment on "Mad Money" Monday, Jim Cramer sat down with Charlie Morrison, chairman and CEO of Wingstop Inc. (WING) , a chicken wings restaurant chain. WING has 1,200 locations and a stock that's up 26% for 2019. WING is also celebrating its 25-year anniversary this year.
Morrison said Wingstop's success stems from a unique product with unique flavors that customers love. The brand is portable and has been successful in 43 states as well as nine countries, he said.
In this weekly bar chart of WING, below, we can see an impressive rise the last two years from a base pattern in the $25-$35 area. Prices are above the rising 40-week moving average line, which has done a nice job defining the uptrend. The weekly OBV line shows a rise from early 2017, but it has yet to make a new high the past 10 months to confirm the new price highs. The weekly MACD oscillator shows a bearish divergence versus price and has been narrowing in recent weeks. A new take-profits sell signal could be coming.
In this Point and Figure chart of WING, below, we can see an upside price target near $93. A trade at $82.25 is needed to refresh the uptrend and a decline to $76.72 would weaken the picture.
Bottom line strategy: If you are long WING from lower levels I would hold risking a close below $75 and target of $93 on the upside. Aggressive traders could initiate longs at current levels, risking below $76.