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Wendy's (WEN) Looking Bullish Ahead of Earnings

Wendy's $WEN will report earnings on 2/21. Price action reflects an expectation to beat average estimates.

What to Expect From Wendy's Company (WEN) in Q4 Earnings?

WEN Daily Chart

(click to enlarge)


Bullish Breakout Confirmation:
- The daily chart shows that price was in a consolidation/correction channel in the second half of 2017. 
- Towards the end of the year, price action started to rally sharply, and eventually broke above the channel resistance.
- This was a bullish continuation breakout, but price retreated after breaking $17.50.
- Price retreated along with the overall stock market, but found support around $15.00, respecting the previously broken channel resistance as support.
- $14.74-$15.00 was also a common support area. 
- Price action has been bullish since tagging this support area, confirming the bullish continuation scenario.
- If price can hold above $16.00 this week, there is a good chance that WEN can rally back towards $17.50, with upside towards $18.00 in the short-term. $20 is also a viable target in 2018, with the bullish outlook capped at the 2007 high of $22.10.