Dunkin Brands Group, Inc., together with its subsidiaries, owns, operates, and franchises quick service restaurants under the Dunkin Donuts and Baskin-Robbins brands worldwide. The company operates in four segments, including Dunkin' Donuts U.S., Dunkin' Donuts International, Baskin-Robbins International, and Baskin-Robbins U.S. Its restaurants offer coffee, donuts, bagels, ice cream, frozen beverages, baked goods, and related products. As of March 30, 2013, the company had approximately 10,500 Dunkin Donuts restaurants in 38 states and the District of Columbia, and 31 other countries; and approximately 7,000 Baskin-Robbins restaurants in 44 states and the District of Columbia, and 45 other countries. It also leases restaurant properties. Dunkin Brands Group, Inc. is headquartered in Canton, Massachusetts.
To review Dunkin’s stock, please take a look at the 1-year chart of DNKN (Dunkin Brands Group, Inc.) below with my added notations:
DNKN has been working its way slowly higher since bottoming at $28 in August. In January and April the stock hit $40 as resistance (blue), which was also a 52-week high resistance. After the stock finally pushed above that resistance in May, DNKN has already tested the $40 level as support once, and it appears to be pulling back down to it again.
The Tale of the Tape: DNKN broke out to a new 52-week high and now seems to be pulling back. A long trade could be made at $40 with a stop placed below that level. A break below $40 would negate the forecast for a continued move higher.
Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT