DNKN Thrusts as Expected Out of Base on Earnings
by Mike Paulenoff
April 24, 2015 • 12:00 AM EDT
Much more often than not, when a stock arduously carves out a rounded 14-month base-accumulation pattern, there is a catalytic event that triggers the thrust towards the upside potential of the pattern.
Thursday morning’s impressive earnings report for Dunkin' Brands Group, Inc. (DNKN) was just such a catalyst that propelled the stock to the 52.00 area in route to my optimal-target zone in the vicinity of 54.00, with my outlier target at 56.00-57.00.
I had added the stock as a trade set-up on April 7 at around 48.00, noting that the accumulation/base formation was putting increasing pressure on key resistance between 48 and 49.
I also noted, "I am thinking that the technical set-up is indicating a positive reaction to earnings on April 20."
DNKN is a “keeper” in the retail sector amidst a lukewarm domestic economy.
See below our chart from April 7.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
On September 20, 2024, fellow MPTrader member Bloom asked Mike Paulenoff to look at his chart setup in Upstart Holdings (UPST). This is what they discussed in Mike's post to our Discussion Room in its entirety:UPST (Upstart Holdings)... It is NO coincidence that when the Fed initiated its rate HIKE cycle in March 2022, it coincided with the steep, contractionary, prolonged bear phase in cloud-based AI lender UPST.
Each Earnings Season (one is in progress as we speak), I analyze my technical setups on individual stocks to see if they provide enough evidence to issue a "highly confident" directional call to MPtrader members. In other words, what is my chart work telling me about the likelihood of a bullish or bearish investor reaction to Earnings?Suppose I apply the same approach to Tuesday's presidential election.
Last Monday afternoon (October 21), Mike alerted MPTrader members to a Goldman Sachs upgrade of optical products retailer Warby Parker (WRBY) to Buy from Neutral. Goldman attached an 18.00 target price to the stock. At the time of Mike's post to members, WRBY was trading at 17.55 in reaction to the GS upgrade, up 6% from the prior close, and just 2.5% from Goldman's 12-month target price.
On the afternoon of March 13, 2024, I posted the following heads-up to MPTrader members about important price action in WPM (Wheaton Precious Metals), my go-to ("favorite") name for Silver Mining within the larger Precious Metals Mining Complex:From a silver-gold perspective, let's notice that WPM strength is pushing up against its near-term resistance line in the vicinity of 45.80.
Over one month ago, on Monday morning, 9/09/24, I posted the following NVDA update for our members:My near-term pattern work makes a compelling argument that the corrective downleg from the 8/16 high at 131 is nearing downside exhaustion and completion in and around 100 (Friday's low was 100.95). That said, unless and until NVDA climbs above 106.30 to 108.