Mouth Watering Opportunity to Profit from Krispy Kreme Doughnuts (NYSE: KKD) Technical Trade
Incase you haven’t had the pleasure of ever tasting one of those melt-in-you-mouth doughnuts, allow me to introduce the Winston-Salem, North Carolina-based Krispy Kreme (KKD). Krispy Kreme is a retailer and wholesaler of doughnuts. There are currently approximately 300 Krispy Kreme factory stores and 95 satellites operating system wide in the U.S., Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico, the Philippines, South Korea and the United Kingdom.
While the fundamentals of the company still look undesirable at best, things do seem to be improving. I point out this opportunity not as a fundamental play or investment, but strictly on a technical basis and trading opportunity. Here is a good short term entry point for those looking to make a quick buck and limit their risk. We are sitting on support right here and volume is increasing. I don’t need to draw the support line on the chart because the 50-Day SMA makes it very self evident.
Look for this bounce to come tomorrow and continue over the next couple days. The stock is relatively oversold here. These are the kind of low risk entry points that I look for when trading. What do you guys think about this one?
Also, congratulations to Mike over at CleverDude for winning our latest raffle. On a side note, Mike runs a GREAT blog that talks in detail about personal finance. Check it out! Enjoy your new book Mike!