Donut Wars – Round 2

• Posted by Greg Harmon
• on June 10th, 2013

In the donut wars Krispy Kreme, $KKD, was the first round winner. Since breaking out of a downtrending resistance in November it is up over 140%. The chart looks pretty good to. The latest leg higher is consolidating, perhaps prepping for the next move. But it is getting a bit over cooked. The Relative Strength Index (RSI) is technically overbought and the Moving Average Convergence Divergence indicator (MACD) is reaching new extreme levels. They can both still continue

Krispy Kreme, $KKD

higher but it is hard to start a new trade here. So how can you beat that? With bacon and a glazed donut perhaps. The chart of Dunkin’ Brands, $DNKN, has shown a steady trend higher along the 20 day Simple Moving Average (SMA) with the latest touch just 6 days ago. This one has a lot of room left in the RSI before it gets to being overbought and the MACD is at lows and about to cross to positive as it rolls higher. Time to jump ship.

Dunkin’ Brands, $DNKN

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