DNKN Dunkin Brands accumulation prior to April earnings
I am scaling in a small position in DDNKN Dunkin Brands. I initiated the position the morning of 2015.03.10. My strategy: "#3 Supply Headwind" from early December 2014 flipped to "#3 Demand Tailwind" in early January at the same time "2 Demand" kicked in. In retrospect, hat was the time to buy! However, the next best thing happened. DNKN made its first pull back in a probable uptrend after pushing above the support / resistance level of 44.50 - 44.75. The "Tailwind" is still in play and the "#2 Supply" from 2015.02.06 has flipped back to "#2 Demand" on 2015.02.25 followed by lower level demand signals on 2015.03.05 & 10. Note... my Cyclical Support and Resistance Levels" code needs a lot of data. It cannot calculate any s/r level above L5 in DNKN so far. This is because the issue date is to new. L5 s/r needs almost 3 years of data to make the call. My program has six levels of support and resistance higher. Fundamentally, the earnings bar was lowered this coming quarter. I believe the Street will want to position this up near the highs to take advantage of a short squeeze on a whisper beat. The pro desks have been accumulating under $44 in anticipation of a move higher. This is also a domestic tilt and does not come with the currency issues facing mult-nationals in the space.
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