Wendys Shows Order Flow Buy | Stock Market Pauses Before Highs

WEN Wendys Co Stock Chart 9.10.19

WEN Wendys Co Stock Chart 9.10.19

Wendys (WEN) has set up a perfect order flow buy signal. 

A bullish gap in August followed by a momentum move that paused at significant resistance. Then exploded to new highs with the majority of the days closing above the open (showing institutional support.)

After the stock exhausted itself we now have two solid days of profit taking, with closes at or near the lows. Perfect for a new long. What I am looking for to complete the buy signal is a LOWER open, that pushes lower, then a bullish reversal candlestick on the 15 minute chart or hourly chart. (Daily chart if you're swing trading)

The key here is a lower open and a push lower, and then a reversal. ALL of that, plus the order flow is the setup. Too many traders get lost in only looking at "one thing" and making a decision.

Profitable trading is about putting the pieces together to build a great argument. The better the argument the greater the odds. This is the foundation of my Ten Perfect Trades Concept.

WEN does have news today. Which weakens the argument a bit, but I wanted to show you the necessary depth to find and trade good ideas.

Pete

I mentioned "institutional activity." Here's a scan of stocks that traded double their normal amount of shares yesterday. Activity usually leads to the start or end of a move. See if you can find some trade ideas.

Stocks are expected to break out to new highs, barring any errant presidential trade tweets

The stock market is itching to make new highs, and it may soon, as long as progress continues to appear to be made on the trade war front.

Technical market analysts, who watch stock charts, see an opportunity for stocks to break above previous highs, after the S&P 500 rose above its 50-day moving average last week and crossed above August highs, two signals of positive momentum.

cnbc.com/stocks-expecting-new-highs

CBO says fiscal year deficit running over $1 trillion

The Congressional Budget Office has estimated that the current fiscal year deficit by the federal government has exceeded the $1 trillion level.

In its budget review published Monday afternoon, the CBO said the deficit for the first 11 months of the fiscal year was $1.07 trillion, up $168 billion from last year.

marketwatch.com/fiscal-year-deficit-over-1-trillion

Pete Renzulli
 

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