Wingstop looks ready to fly. $WING – February 14, 2023
WING SPY
This is Scott with your Chart of the Day. I want to take a look at Wingstop ( NASDAQ: WING ) as I think Wingstop ( NASDAQ: WING ) has some potential to fly into earnings. Earnings are coming up on February 22nd, so not too far away. But the stock is giving a buy signal, in my opinion, here today.
Let’s just look at it on the daily chart and then we will kind of dive in a little deeper. As you can see on the daily chart, we have this clear level of resistance right around 169.00. In November the stock couldn’t get above. It tried and tried but it closed below every time, so this was a clear level of resistance.
It pulled back to the moving averages, and more recently it found support at the 21-day. And yesterday it had a nice upside move on a pickup in volume. Now, this, in my opinion, is maybe a good starter day on this day here, but today, in my opinion, was the real buy day. Because it is showing you some upside follow-through and a close above resistance, coming on higher than average volume, also, a signal of strength.
As you know, today we had CPI out and the market was volatile. This is the S&P 500 ( NYSEARCA: SPY ), we went up to the highs, it pulled back, made a new low, and eventually, we closed decently.
But Wingstop ( NASDAQ: WING ), if you look intraday, it didn’t make a lower low on the day. It established support right here first thing in the morning, and then took off, and really didn’t look back. And so while the rest of the market was testing the lows, Wingstop ( NASDAQ: WING ) was finding support intraday at some intraday moving averages here. And like I said, it closed near the highs and did it on decent volume, so a nice secret signal of strength.
As an active investor, this is the kind of stuff you want to look for. You want to look for stocks that are holding up when the rest of the market looks like it is going to puke. Wingstop ( NASDAQ: WING ) definitely looked actionable here today.
It is, at this point, in my opinion, a bit extended above that 8-day exponential period moving average. But it gives you a nice intraday, or maybe a micro pullback to the 8-day, maybe you could take a little stock and get a little piece if it continues its run into earnings.
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