(Another) Mike wanted me to take a look at KKD:
On another note was curious your take on Krispy Kreme; not as a trader but over an intermediate term (6 to 18 months). I'm not that good (yet) at the TA but looking at the weekly MACD and the monthly MACD I notice 2 things; first on the Monthly; the histogram is improving steadily. Also, the weekly histogram in converging since September with the price line; which again is typically bullish. Finally, the Stochastic on the monthlies (and to a lesser extent the weeklies) have been in oversold for quite some time.
I think once the dust settles there has got to be value in the brand - so I was wondering how you'd read the charts for a longer term period.
I have to say it again -- counter-trend trades aren't my thing. Given that kind of time frame I'd look to either the 50 or 200-day moving average to tell me which direction to look to trade this. Based on those moving averages I would not be a buyer of this stock. It does look like the sellers may have exhausted themselves, so perhaps a short-term relief rally is in the cards. But there's a lot of overhead resistance to get through, especially the congestion just above $7 from earlier this month. I might be more interested if it could hold above its 50-day moving average and if that average started sloping upward.
I agree. KKD is either a short or nothing, right now -- this puppy's in a serious downtrend in any time frame: monthly, weekly, daily. I would be looking to short KKD if it moved back to $7.
Michael... I'm confused as to why you call this low at KKD a "higher low"... it still looks like a low to me...
TradingHumble, the all-time low for KKD (closed at $5.36) was back on Feb. 24. This recent low on April 22 closed at $5.80.
Yeah, like Scott said, I was comparing the April 22nd low to the February low