WEN Wendy's Monthly Chart; Overbot; Negative Divergence; Upper Band Violation

The monthly charts for restaurateurs such as DRI, MCD and WEN are not well. A soiled napkin and half-eaten french fry is stuck to the dirty linoleum floor. The red lines show the negative divergence in play so a major top is forming. the DRI and MCD charts are similar and the same technical analysis can be applied to those monthly charts. Note, however, that MACD line is trying to squeeze out another sliver of upside joy.

WEN looks exhausted but the MACD line may create one more jog move, down one month or so, then back up to the vicinity of these highs, then, with the MACD line neggie d, the top is in and WEN should move sideways to sideways lower for the remainder of the year. Thus, say the significant top occurs anytime between now and April and these prices may not be seen again for many months even years.

The ADX purple box shows how the upside rally in WEN was one big party in 2014-2016 a very strong trend higher. That petered out in 2016 and over the last 6 months is trying to reestablish that strong upside trend. Considering the chart set-up with neggie d, and an upper band violation, and overbot stoch's and RSI, all bearish signals, the ADX may roll over lower going forward confirming that the strong upside trend is over. WEN can be shorted from current levels and higher. Keystone has not shorted it as yet. WEN should venture down to 13.5-14.5 this year.

Mickey D's has a bit more juice available on the monthly chart than DRI and WEN. DRI has violated its upper band on the monthly and and can drop 20 points this year. DRI and WEN will likely peak out with a multi-month top, perhaps multi-year, between now and April, DRI will likely roll over a touch sooner than WEN. MCD will peak out say in the March to June time frame. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.