WEN Watch

The restaurant company Wendy's/Arby's Group Inc. (WEN) moved into bull phase on the macd today, but just barely. The phase switch comes after a 25% decline from late April.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
WEN $4.41

At 12:42 p.m. Eastern

The signal has so far been totally unconfirmed by the price action. It opened at the bottom of the two-day range, tried to bump up, failed miserably, and dropped back to sulk within the penny of the opening price.

The other major signals are mixed: The parabolic sar moved to bull phase on Thursday; Person's Proprietary Signal remains in bear phase, which it entered on April 27.

A break above $4.60 would confirm that a new trend is in place.

Reversal Levels

• $5.27, +19.5%
• $4.60, +4.3%
• $4.41 <== You are here.
• $4.25, -3.6%

In the longer term WEN has been prone to huge, sudden moves.

It traded in the 50s and 60s in 2006, and dropped down to the 20s in a single day.
It traded in the 20s in 2008, and dropped down to below $5.50 in a single day.

So, with WEN, it pays to be extremely defensive over the long haul. Be afraid. Be very afraid. But for the short term,  given the volatility, it could be a money-maker.

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Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.