There are some charts that have that look. You know the type, ones that look invincible, even in the face of a tough market. Even as there are naysayers, the company continues to fire on all cylinders and time and time again the stock seems to defy gravity. But there is only so long that a company can withstand the pressures of a market that is in distribution mode. Even the best often fall when markets correct.
Buffalo Wild Wings (BWLD) has had an usually long run and since 2010, the stock has just about tripled. Not bad for wings and beer! But there are signs of that run could be coming to an end, at least from the perspective of the chart and our indicators.
- The ALERT! was triggered at $83.65
- An aggressive move lower could occur if there is any weakness in the 4/24/12 earnings report
- The lowest point of the support is $83.30 and from there there is a ultra-fast zone down to $78.20, then $71.95
Profit and/or Stop Levels:
- Traders can initiate a partial position ahead of earnings at or below the triggerpoint. Add-on if the price passed down through $83.20.
- The position may be looked at to increase below $81.90
- Profit Target, cover $71.79
- Stop level $91.50
Please see important risk disclosures before acting on this ALERT!
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