Let’s got Hunting for Strength at WingStop! – September 9, 2021WING SPY
This is Scott with your Chart of the Day. I want to take a look at Wingstop ( NASDAQ: WING ). Now, maybe it’s because I didn’t get to eat lunch today, but I am taking a look at this chart and I think this chart is pretty promising. As you know, the S&P 500 ( NYSEARCA: SPY ) is in a very solid uptrend right here but it seems to be weakening a bit as we closed under the daily 8 exponential period moving average.
When that happens I start hunting for relative strength. I start hunting for stocks that are performing better than the overall market and today I found Wingstop ( NASDAQ: WING ). If I zoom out here you can see Wingstop ( NASDAQ: WING ) is actually in a really long base of consolidation that it just recently broke out of. It basically went sideways for about a year. And just today closed at an all-time closing high, so we are seeing some great relative strength within Wingstop ( NASDAQ: WING ).
Here on the chart, I can also draw some lines and you can see that this level has acted as resistance in the past. We couldn’t get above, we got rejected, didn’t even make it close, and then we kind of chopped around here for a little bit before the market pushed the stock higher. I like the fact that Wingstop ( NASDAQ: WING ) is making new highs while other stocks in the market are kind of creeping near some lows.
I think it is worth keeping an eye on Wingstop ( NASDAQ: WING ) and watch for a buyable pullback to this daily 8 exponent period moving average. It is making new highs on the daily chart and on the weekly chart is also making new highs. We want to pay attention to stocks that are making new highs when the market is a little touch and go at the moment. So keep an eye on Wingstop ( NASDAQ: WING ). I am watching for a buyable pullback to that daily 8 exponent period moving average.