$WING might have more meat on the bone – February 7, 2023

by DAN WING 
This is Scott with your Chart of the Day. I want to take a look at Wingstop ( NASDAQ: WING ). Wingstop ( NASDAQ: WING ) does have earnings this month but it is not coming up until the 22nd of February. I still think there is some potential meat on the bone, in terms of this move, that is happening with this stock.

If I zoom in here a little bit, you can see how we had this little bit of a breakdown under all these moving averages here. Quite a pullback, 22 percent to the lows, but then the buyers stepped back in, gave you a daily higher low compared to this low here, and then it was off to the races and back to the highs.

This is a pretty key zone at around this 166.00 level. If I zoom out here a little bit you can see how important this level is. Look at this right here; right back to the highs from 2021. So definitely a level where we could see some consolidation. But for a move higher I think we want to watch for a strong push through that 169.00 level, right around there.

I think it makes sense to set an alert on your software for just under 169.00. And then you will want to watch for a strong move coming through on higher-than-average volume. Now of course, this move will have to come before earnings because, personally, I don’t like to hold stocks over earnings unless I have a really good cushion.

If it breaks out sooner, you build that cushion into earnings and then, maybe, you have the decision to make just before they announce.

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