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 March 11, with AAPL in a month-long down-leg and trading at 156.34, Mike Paulenoff posted a relatively bullish analysis for MPTrader members, writing:
"I am watching AAPL more closely than usual these days, as a bellwether for the health/vulnerability of the overall market.
Back on March 1, 2022, Mike Paulenoff posted a technical "heads-up" about JPM for members of MPTrader.com, writing:
"JPM has broken down in glaring fashion from a 12-month Top Formation that my pattern work addressed four weeks ago in case JPM sustained beneath 139-140. Today's low at 134.15 violated my shallowest target zone of 135.50-137.50, and points next to 128-130, with an outlier target zone in the vicinity of 115.
Last Monday morning, May 2, as the equity market careened to the downside ahead of Wednesday's FOMC meeting and the prospect of the biggest rate hike in decades (50 bps), Mike Paulenoff alerted MPTrader members to a potentially significant developing technical setup in AMZN, which had hit a new 13-month low.
Mike wrote: "AMZN pressed to a new corrective low at 2367.50 this AM, a full 37% beneath its ATH.
On Thursday, April 14, Mike Paulenoff cautioned MPTader members about possible near-term upside exhaustion in YIELD and downside exhaustion in longer-term bond prices (and the TLT), writing:
"10 Year YIELD spiked to a new multi-year high at 2.84% today, but Daily Momentum remains well below yesterday's Momentum high, which is our first indication that perhaps the vertical assault in benchmark YIELD is nearing upside exhaustion.
JPM (JP Morgan) reports quarterly earnings this coming Wednesday during pre-market hours. Investor reaction to this particular report is positioned to have a significant influence on the price of the stock. JPM's outspoken and high profile CEO Jamie Dimon already has warned us that changing (i.e.
