Wendy's Pops On Nelson Peltz Comments: What's Next For The Stock?

Wendy's WEN shares are trading higher Wednesday after the stock was mentioned on CNBC by Nelson Peltz.

Peltz stated Wendy's has 7% of his portfolio and that the company is "doing great," having just opened stores in the U.K.

Wendy's was up 1.06% at $22.33 at press time.

See Also: How To Invest Like Nelson Peltz

Wendy's Daily Chart Analysis

• The stock looks like it's nearing resistance in what technical traders call an ascending triangle pattern.
• The $24 price level has held as resistance in the past as it's been a place the stock has struggled to stay above for long. The higher low trendline has been an area where the stock has found support a few times in the past. These levels may continue to hold in the future.
• The stock trades below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock looks to be in a period of consolidation.
• The 50-day moving average may hold as an area of resistance in the future, while the 200-day moving average could hold as support.
• The Relative Strength Index (RSI) has been climbing for the past couple of weeks and now sits at 52. This increase in buyers shows that buying pressure now outweighs the selling pressure in the stock.

What’s Next For Wendy's?

Bullish traders are looking to see the stock continue to trade above the higher low trendline. Bulls are then looking to see the stock go on to break above the $24 level and be able to hold above it. Holding above the previous resistance will let this same level turn into support and be ready for a further strong bullish move.

Bearish traders want to see the stock fall below the higher low trendline and start to hold it as resistance. If this were to happen, the stock could follow with a strong bearish push and a possible trend change back downward.