Krispy Kreme Doughnuts : Bearish under USD 16
By Alexis Peyrard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$16.23 | $14 | $16.6 | +13.74% |
Technically, the security follows a downward trend since November 2013 when an important bearish gap formed. The lowering of its guidance recently formed a second gap that adds to the bearish pressure. In addition, moving averages are still slumping. Therefore, the breakdown of the USD 16 support will be a strong sell signal to test new lower levels.
In consequence, a short position could be taken under USD 16 aiming for a return to USD 14. Nonetheless a stop loss will be placed over this level to protect from a possible reversal movement.