Wendy's $WEN has been choppy in 2018 and ended the year with a sharp bearish swing. WEN Daily Chart(click to enlarge)Bears Took Over:- I have to admit that Wendy's price action was very choppy approaching the turn of the year in 2018, and I changed my outlook several times.- However, after a few months of price action since August 2018, we can say that price action has established lower lows and at least one lower high. Resistance:- Price found support at $15.50 but the rebound failed to sustain above $18 and a subsequent dip came down to $15 before finding support.- Now, we are looking at a bullish swing from $15, but I think it will find resistance as it approaches $17.- Around $17, we have the cluster of 200-, 100-, and 50-day simple moving averages. - If price goes above $17, we can still anticipate resistance in a common pivot around $17.40. - A break above $17.70 would be unlikely in a bearish market, and would be a strong bullish signal.- Finally, the RSI should hold under 60 in a bearish market as well. Downside and Support:- If price does indeed retreat from $17.00 or a little higher, we can anticipate a dip towards $15.00.- If price reaches back to $15.00 again, we should not rely on support again because WEN would be in a bearish trend in the short to medium-term.- In this scenario, I would look for downside towards the $13.00-$13.60 area. - This area involves a couple of support pivots as well as a rising trendline seen more clearly on the weekly chart below.- If the weekly RSI is near 30 while price stalls around $13.50, I would look to buy. - From here, there should be upside at least back to $17 as long as the overall market is not bearish. - If the overall market is also bullish, we can anticipate price to eventually push into new highs above the 2018-high of $18.60.Strategy with Reward to Risk Consideration:- I am looking to start averaging in around $14.00. If price dips to $13.00 I would have another long position. The average would therefore be around $13.50.- My top would be around 12.20 and target at $17.00. This trade has a reward to risk profile of almost 3:1. WEN Weekly Chart(click to enlarge)