Buffalo Wild Wings (NASDAQ: BWLD)

Buffalo Wild Wings, Inc. owns, operates, and franchises restaurants primarily in the United States. It offers chicken and various food and beverage items, as well as serves bottled beers, wines, and liquor. As of February 4, 2014, the company owned and operated, and franchised approximately 1,000 Buffalo Wild Wings locations in 49 states in the United States, as well as in Canada and Mexico.

To review Buffalo’s stock, please take a look at the 1-year chart of BWLD (Buffalo Wild Wings, Inc.) below with my added notations:

1-year chart of BWLD (Buffalo Wild Wings, Inc.)

Over the last 5 months BWLD had created a strong level of resistance at $152 (blue), which also constituted a 52-week high resistance. A break through that level would most likely mean higher prices for the stock. As you can see from the chart, BWLD finally broke higher yesterday and should be hitting new highs moving forward.

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The Tale of the Tape: BWLD broke out to a new 52-week high. A long trade could be made near $152 with a stop placed below that level. A break back below $152 would negate the forecast for a continued move higher.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach