Wendy's (WEN) has been retreating since it tagged $17.50 a share to start the year. It closed at $16.50 last Friday (1/26). I think as it comes down to $16, it could be a good buying opportunity assuming that it is still bullish from its recent bullish breakout.WEN Daily Chart(click to enlarge)Pullback from Bullish Continuation:- As we can see on the daily chart, WEN had a strong run since late November into early 2018.- This rally broke above a consolidation structure that has been forming for half the year in 2017. - This bullish continuation breakout stalled under 18, but I think there is a strong chance that bulls are still in charge.- If price comes back to the 15-16 area, while the RSI comes back close to 40, I think a buy can be considered.- Let's say we have a stop at 14.50 and a buy at 16.- That is a risk of 9.4%.- A minimal target of 17.50 (near the previous high), has a potential reward of the same (9.4%).- A target of 20 yields a 25% reward.- Therefore, buying at 16 should only be considered if you believe WEN will push to $20 instead of coming down to $14.50.