When Wendy's $WEN broke below $17 a share, it broke some critical support factors. I saw that as a bearish signal. Price did fall lower, but found support around $15.50 and immediately did a v-shape reversal. Some call this type of price action a clear-out, and assess it as a bullish signal. I would agree in this case. Wendy's (WEN) Daily Chart(click to enlarge)Clear-out:- The daily chart shows how the bearish breakout turned out to be a clear-out, where price dips sharply but immediately rebounds just as sharply.- Price is actually back above October's high, adding to the evidence that bulls are in charge and kept bears at bay after the bearish breakout below $17.00.- Now, this $16.50-$17.00 area should be seen as support, and there is at least upside back to $18.50, with further upside if general market risk appetite returns. - This is my outlook unless general market aversion becomes too heavy, in which case, I would expect price to slide below $16.50 and "chew" down the tail towards the $15.50 area.