The Sponge is coming

アップデート済

With news spreading regarding the collab between Wendys and Paramount to bring the iconic cartoon franchise SpongeBob SquarePants back to the struggling food chain, I decided to take a look at the charts and I am liking the set up i see currently prior to earnings.

Wendys stocks has been in clear downtrend since May 2023 and after retesting the May 2022 16$ support level. I think we can capitalize on a 12% move to the upside at around 19$ if we remain within this downwards channel.

A positive earnings catalyst can propel a breakout up to 20$ for about a 20% gain from current levels. Anything otherwise can provide us with an easy short to continue the trend down.

ノート

taking a closer look at the daily chart, we look like we are consolidating and squeezing within this flag for a move that i think points to the upside, will be taking on a long position if provided the opportunity next trading session.

ノート

Markets look weak, haven't striked just yet

ノート

green while the market bleeds, this is shaping well so far

トレード稼働中

building up a small position today

ノート

Wendys looking good, love what im seeing !

ノート

looking good 😎

ノート

would like to see us bounce as previous resistance now support

ノート

beautiful bounce! added to my position today

WEN perfectly bounced off the resistance turned support and the 0.382 fib level. Momentum is on our side and i think we can continue climbing in the coming sessions.

This is what ill be looking at in terms of price action

ノート

we may see more downside, let's see if we can bounce that EMA tomorrow, I picked up so more shares

ノート

great bounce! We once again bounce clean off the support and 0.382 fib level and im glad i picked up those shares.

Lets see if we can break 18$ this week

ノート

price action is very boring, sitting on tht 50 EMA on 4H.

We got the official news today 👇

tradingview.com/news/benzinga:dd40430a1094b:0-wendy-s-is-ready-kids-and-adults-spongebob-squarepants-collaboration-includes-pineapple-frosty-krabby-patty-burgers/

ノート

slowly climbing up

This play is where i am parking some capital and today i decided to cut my position in half for a small gain in order to fund my position in

still expect more upside tho!

ノート

We got a big POP today as we climb over 4% at one point 😎. has succesfully touched that area high from JUL and outperformed the QQQ today despite the CPI news. Love to see it

We successfully broke out of that area of consolidation we have been in for the past month or so with strong volume

WEN is proving a good hedge against the greater market. I thought about taking profit but i will trail a stop instead. I expect us to retest that previous level of resistance now support and continue trending up. Slowly but surely. My money feels safe.

ノート

Another big day for !

Just shy off my initial target since September 11. Happy to say that we have beaten the inflation rate and any high yields saving account with this one.

I've closed out my position entirely in order to have dry powder. In my current portfolio setup i dont have any cash ready since i had my free money parked in

Still think we can limb a bit higher and will keep an eye on this one. We have earnings coming up soon and will share some of my thoughts when the time comes.

ノート

What a beauty!

Sold off a day or two too early but im loving this price action regardless. Def something to learn from in the future

Earning is right around the corner and as of now i lean bearish. I think Wendys failed to capitalize on an amazing collaboration opportunity with SpongeBob and the meal they offer isn't a home run in my eyes. i don't think this or next earnings will reflect anything substantial and would bet that we see a correction. Keeping my eyes close on this one

ノート

results are in and we called it here, earnings were a bust 👇

tradingview.com/news/DJN_DN20241031012870:0/

beautifully touched that 20.50$ region and as expected eanings fell short. The collab was not successful and i think we have an "easy" short here

~next stop 17.70$

ノート

Nice little pop on Friday and i took that chance to start positioning my short as we can see an RSI divergence on the daily

we are current still above that line of resistance turned support but after those earnings i don't believe we will hang above much longer

this too me is a deadcat a break above that local high will invalidate the trade here

ノート

jump to my surprise. have not closed out. choosing to hold for now . 20.75 candle close will be my limit

ノート

great move down again. annoyed i didn't add to my position on the last update, i did place an order but it did not execute.

ノート

great move, expect us to continue down but we have that 50 EMA right below us

ノート

great continuation to the downside, position is now a t 100% gain exact, will be looking to take profit in the next session or two.

if we can break the 200 EMA on the daily i expect a sharp move to 17.65$

ノート

holding up on the 200 EMA... for now

a bounce was much due, looking for prce to behave like so , trailing to proect profits is ideal

ノート

not exact but good movement down. ive reduced my position by 25% and will reduce further next week. Current puts sit at a 140% gain

ノート

1st major target tested perfectly and i have taken profits though some filled limit orders and now sit with 50% of my original position. we are more than well playing with house money at this point

WEN is holding up well here, seeing some buying pressure and an RSI divergence on the hourly chart. lets see how we do the next couple of sessions. good idea to trail a stop, closing above 18.41 would be a good area to put it, but the trend is our friend.

ノート

decent pop today, fully expected will close out my short if we close above that local high