Market analyst Carter Worth projects a significant ‘bearish-to-bullish’ reversal for Wendy’s stock, citing a developing ‘double bottom’ chart pattern. He suggests the fast-food company’s stock is completing its bottoming-out phase, implying a potential move towards the $10 price level. Worth advises investors to consider buying the stock, based on this technical indication.
READ MORE FROM CNBC PRO
Veteran market analyst Carter Worth of worthcharting.com has identified a compelling technical setup for fast-food chain Wendy's, forecasting a substantial 'bearish-to-bullish' reversal for its stock. Worth's analysis points to the imminent completion of a bottoming-out process, marked by the formation of a critical 'double bottom' pattern on the charts. This pattern, a well-regarded indicator in technical analysis, suggests a strong upward momentum is on the horizon. Investors are encouraged to consider buying the stock at its current levels, with Worth setting a price target of approximately $10.
Worth emphasizes the importance of observing Wendy's current price action in comparison to its performance during the lowest points of the Covid-19 pandemic, where a similar foundational level may have been established. The developing double bottom pattern reinforces the view that the stock is ready to break free from its downward trend and embark on a new trajectory higher.
DISCLOSURES: All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
