Wed 13'th Dec 2017
Wingstop Inc. Stock Analysis
Technical stock analysis for Wed 13'th Dec 2017
|Shorts||11.22% ( 2017-11-15 )|
Wingstop Inc. lies in the upper part of a wide and strong rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $43.11 will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 26.25% during the next 3 months and, with 90% probability hold a price between $45.66 and $54.43 at the end of this period.
Only positive signals in the chart today. Wingstop Inc. holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at $40.79 and $37.90. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday December 06, 2017, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
Relative Strength Index (RSI)
RSI14 is 70 and the stock is currently not being overbought or oversold
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at $39.69 and $36.41. There is no resistance from accumulated volume above today's level and given the right condition the stock may perform very well during the next couple of days.
There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Wingstop Inc. finds support just below today's level at $39.69. If this is broken, then the next support from accumulated volume will be at $36.41 and $32.19.
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day, the stock moved $1.58 (3.79%) between high and low. For the last week, the stock has had a daily average volatility of 2.77%.
Since the Wingstop Inc. has been rising for 6 days in a row, the risk for the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.
Our recommended stoploss: $41.07 (-3.87%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 5 days ago.)
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Wingstop Inc. holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months.
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