BWLD and the restaurant stocks

[Pascal]

In the restaurant chains sector, SBUX is doing very well while YUM experienced an air pocket.
In between, MCD, BWLD and CMG are goin,g to report in the next two weeks.

This sector is not attracting much money.



Among the three major competitors, MCD has the worst EV pattern since the longest.
CMG looks comparatively positive, while BWLD shows a negative pattern during the bounce.
Since MCD and CMG are reporting in the next days, better not to try a trade here.

Hence, what is left is a short BWLD trade.

There is no urgency to enter that short trade today, but I would guess that if depending on the MCD/CMG reports, then BWLD will follow the same price pattern at least in the short -term until October 28.







BWLD looks interesting as a short into resistance and in the upper section of its envelope.





The sensitivity analysis shows that the higher we enter the short in the envelope the better the trade.