Is That an Island or a Floating Continent?

Gator's Chart of the Day: BWLD

If this is an island it's the largest one I remember; about 6 months long.  The book says this stock should be trading lower if it is an island reversal.  Maybe it's a floating continent.

BWLD usually does well in football season and in case you hadn't noticed the NFL has already played pre-season games and college schedules begin 2 weeks from Thursday.

Since the gap down the stock has made higher highs and higher lows.  That sounds good if you want to get long.  The P/E is still pushing 20 but analysts maintain a target price of nearly 86.

BWLD Weekly Chart

The weekly chart shows the stock sitting on a long term trend line so we could see a continued move higher.

The Trade
Since the market is holding up I think a position could be started now with a stop below the long term trend line just under 70.  If the analysts are right about 86 as a target, that presents a risk of about 4.3% down and a reward of 18% up.  It probably won't be a fast trade.  Might take all season.