Right before I went long on Krispy Kreme Doughnuts, I happened to see the "Hot Doughnuts Now!" sign lit up like Christmas. Secondly, my appetite was begging for doughnuts, and lastly, the market always give good trades on one's birthday. Need I say more…? In fact I do – I need to order me one of these KKD sandwiches (could this be the first time Heaven has ever been served on a plate?).
All kidding aside though, I often times get suspcious of the run-of-the-mill breakout play, but this particular one has some strong positives working in its favor:
– Strong base put in over the last couple of months
– Encouraging signs of volume so far today
– Clear breakout level at $6.61 signifying the breakout level for the stock, with two favorable price targets that exceed the risk being taken.
Here's the KKD Setup.