DNKN Thrusts as Expected Out of Base on Earnings

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.

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