EWG trade ideas
$WING Tasty?I have not been to Wingstop $WING yet.
For those who have, how are they different from BWW?
Put it an "almost" inside day Friday after pulling back to earning gap up low.
Potential PB setup, but 2 more days creates a more defined pivot.
Does WING's Earnings Bounce Have Legs?WING has been an interesting story in the restaurant sector over the past 7 years. Wingstop has experienced above-average growth in both top and bottom line figures over this timeframe. Let us explore why this is the case and where the stock may go from here...
Fundamentals: WING's fundamentals are nightmarish. Incredibly high levels of debt (likely why WING has been able to expand so quickly), negative stockholders equity, 17% of shares float are short, a forward P/E of 70, yoy revenue beginning to stall with current year-end revenue expectations up only 2-3% from 2021 year-end. WING's total liabilities make up more than double its total assets. The company is grossly overvalued, Wingstop's intrinsic value is roughly 35-45 dollars a share. This bounce off of earnings is unsustainable, to say the least. The company did not even post a beat, and its shares surge 20%... this move simply does not make sense.
Technicals: Long-term uptrend still intact. This will change if a move below the A trend line occurs. Currently, WING is struggling to break above the short-term bearish trend line labeled as B . A touch at 128.43 resistance and a quick retreat back to trend line B leads me to believe this is a temporary bull run in what is a longer-term downtrend for WING.
Global macro conditions: Tightening of financial conditions, supply chain woes, war, sanctions, Supply crunches in energy commodities, climate crises, hot inflation, political unrest, and sovereign default concerns intensifying -along with other factors- all play a role in a rapidly worsening macroeconomic narrative. These factors are often talked about by economists but I fear they are overlooked in cases such as these when the market rewards a weak growth stock such as WING with a massive bounce in price off of an average earnings report, all during an unprecedentedly difficult global economy.
Targets: Unclear as to when WING will significantly fall in price. I think the deterioration of financial markets over the next few years will be serious- things will get worse and stay worse for longer than expected- and companies with trash fundamentals like WING will be the first to suffer. Needless to say, I would be short WING if given an option. I see a fall to 113.92 as a short-term lock. Longer term I expect a choppy downward trade from lower support levels to lower support levels eventually forming fresh lows at the 49.89 support level. Seems like a bit of a wild prediction I'm sure, but this is what I see.
As always this is not trading advice, good luck!
WING = winningVerrrrry close to its turnaround, just waiting for the divergence. Outlook isn't crazy volatile but expecting slow but steady gains as accumulation begins.
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Triple top showing on $wing , history may be repeatedIf history repeats itself it should have a bad week for wingstop with that third rejection at the 172 mark.
Long: Wingstop. Breakout confirmation @ $160change of trend. broke high at 160. I expect further upside. strong fundamentals. hopefully they surprise on earnings next week. Target. $206-$222
Huge wedge technical breakout I'm new to technical trading but with the overall uptrend of WING and this pennant forming, I'll be looking to buy September call options next time the price touches the blue support trendline. Their revenues are great and they've made explosive moves on earnings in the past, I love the overall uptrend.
bird is the wordshe's clamped, ready for a nice free fall. No idea why fried chicken & shi shi burrito joints trade at their insane valuations but it warrants a head check and we all know this shit can't last in the face of rising input costs. Either capitalism comes nose-to-nose with sanity or Christ returns. One or the other, people...
Sold my puts into a knee-jerk rally tape Friday, loading back up next rally in this name. Fading every relief bid this name sees. AAPL trades at low 30x, gets sold hard by the St. but chicken & soda gets 150X?? WTF. This shit is rigged. No wonder DOGEUSD is up 26,000%. Calling out all these suits & their asinine pumping.
fast food chicken trading @ 150xlooks like it's about time to re-price this sh*t... wing expert or no expert at cooking bone in bone out, your game doesn't need to be priced like a biotech phase 1 bangin' results. wtf. Loving how they price stocks like this to sideline a lot of players in the options market. 👌
WING Elliot Impulse WavePosting for my own reference as I'm just learning about Elliot Waves. Appears to be in wave 4. Might actually play this one if wave 5 gets confirmation.
WING: Breakout Confirmed, 15.88% Potential Profit!Description: WING is trending higher and in an uptrend meaning that highs are getting higher and lows are getting higher. The uptrend line on the chart and the Trending Band Indicator (which measures trend) supports the Long Position.
Stats:
1. Ideal buy range: $147.2 - $151.6
2. Take profit: $171.34
3. Stop Loss: $143.52
4. Risk To Reward: 1 / 5
5. Accuracy Rating: 94%
WINGSTOP FOR SELLBEEN WATCHING WINGSTOP FOR A POSSIBLE TRADE AS A LONG BUT FROM HERE ON IVE CHANGED MY ANALYISIS FOR A POSSIBLE SHORT POSITION TO THE THE 90 DOLLAR MARK...IF YOU SEE IT TOO COME JOIN IN
Pull Back FishingWING missed earnings and took a fall to Mid Cup which is usually strong support.
Although a deep fall, to 136.18 which is a few cents below mid cup which is 136.24. This made me think the support there is strong.
As a rule, waiting for long entry level which is a long entry above the high, is the standard. Wing may have support at mid cup. Time will tell and always the possibility of a dead cat bounce.
Not a recommendation
Two headed chicken Head and ShoulderCareful folks, I just spotted a two headed shoulder chicken wing. Trade carefully with the circled price as your guide. Have fun.
