The NFL is ON! and That Means Chicken Wings

• Posted by Greg Harmon
• on July 26th, 2011

Before I moved to Cleveland, we used to visit at least once a year. There was always a side trip for just the guys to BW3’s. Let me share a secret with you. I know it’s okay because my wife doesn’t read my blog, says it is too much about trading. Too much? She doesn’t know what she is talking about. BW3’s is Buffalo Wild Wings (ticker: $BWLD). The home of 10,000 60 inch flat screen TV’s showing every live football game from High School to the Pro’s and some classic Big Ten Games, beer by the pitcher, and at least ten varieties of Buffalo chicken wings. So with the NFL resolving their issues just in time for BW3’s to report earnings tomorrow night, what does the stock look like? Let’s take a look. The daily chart for $BWLD below shows that since breaking out

Buffalo Wild Wings, $BWLD

of the consolidation range earlier in the year, it has had a series of three $10 moves higher to the current flag between 66 and 68. A break of the flag higher would expect to see a measured move to 78. But the Relative Strength Index (RSI) is moving lower and the Moving Average Convergence Divergence (MACD) is moving more negative after crossing down. This is the same set up that happened after the consolidation at 63 in May where it pulled back before the move higher. If it does pullback then there is support at 63.85, with the 50 day Simple Moving Average (SMA) sitting near there as well. It has also pulled back as far as the 100 day SMA previously and rebounded. It was a $8 move last time and would be again now to 59.88.

Those looking at the long side can use the August 70/75 call spread, buying the 70 Strike and selling the 75 Strike, which cost $1.10 to end the day Monday or the August 65/60 put spread, buying the 65 Strike put and selling the 60 Strike put, which cost $1.60 could work for those looking at the short side. Putting the two together for a debit of 2.70 can get you both sides. You decide.

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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