All of the action in DNKN since early July can be viewed as a rounded base-like pattern that is serving as both the conclusion of a major correction off of the all-time high at 59.70 to its corrective low at 50.89 (8/30), and as a multi-month accumulation period.
Since the 8/30 low at 50.89-- the low of a 15% correction, however, DNKN has climbed . to today's high at 54.19, or 6.5%. In the process, let's notice that DNKN has climbed above the 5 and 20 DMAs, which are now up-sloping , while the price structure is pushing up against its flat 200 DMA at 54.17.
In that the juxtaposition of the intermediate term momentum gauges with the price structure argues very much in favor of upside continuation, a sustained climb above the 200 DMA will point DNKN towards a challenge of its prior rally high at 55.06, above which it will trigger upside potential that projects to the 58.00 target zone.
At this juncture, only a decline that breaks 52.65 will neutralize the current bullish set up.
Our Model Portfolio entered a long position at 53.55 this morning...