Here’s your plan for the chicken wing trade. Wingstop (WING). (July 11, 2015)
I’m going to go back to Wingstop ( NASDAQ:WING ). This has been a “Chart of the Day” video at least once maybe even twice. This is one that the members in our forum have been jumping all over and you can see why. Here’s what I want to point out, this is real brief, higher high, higher low, etcetera, etcetera. Every single time here, over the last five days, we’ve had higher highs, and higher lows.
Also look at this: on the close the stocks have traded very, very high in relation to their intraday range, so they’re closing near to the high of the day. Volume is increasing, you can really see this on an hourly chart; we could zoom down more if we wanted to. This is what I’m talking about, sideways consolidation coming all the way out, this was what first brought it to my attention was this pop here, it was a move on above average volume.
So now you see the stock doing what it’s doing. Here’s the next buy point, seriously, because remember it’s making higher lows and higher highs. If the stock moves up above 34.85, I’m going to put an alert here, if the stock moves up above 34.85 then guess what? We’re off to the races again. If the stock pulls back you’ve just got to look at this as really a change in character. But here’s the deal, after the stock opens up it got a lot of press, traded down just a little bit but now it’s trading above its opening high.
This is not a stock that I think you really trade; you can if you want, it’s plenty liquid, over a million shares traded, but I think this is just a stock that you own. Just take a small position in the stock, as the stock moves higher, as it prints new highs you can either add to that position and then have a stop on your initial position, or you just let your initial position work. Just take a small position in this because you have to know all these IPO’S are speculative stocks, they absolutely are speculative stocks.
GoPro ( NASDAQ:GPRO ), this was fine, it worked really, really well here, here, here, here not so much, but then once it started moving here it was all good, these are all a little bit different. You look at Facebook ( NASDAQ:FB ), remember this, this walk down memory lane? Everybody was all lathered up about Facebook ( NASDAQ:FB ), it opens up, I think it was around 40.00, which was higher than it was quote “supposed to” and the stock traded down over 50 percent before it started moving higher. Now don’t you think you’d have been a genius if you had bought Facebook ( NASDAQ:FB ) on the IPO and just held it?
So what I’m saying is, Wingstop ( NASDAQ:WING ), it could still go either way. You extrapolate this out a month, two months, a year this could have gone all the way up to $40.00 and then down to 30.00. As the bird flu kicks in and people decide that they’re going vegan, and they really don’t want to eat stuff where feathers used to be sitting on it, whatever, you just don’t know. But right now, with respect to this kind of price action, this is where you want to be. So take some of this stock and I think you’re going to make money on it.