Krispy Cream Donut Weekly God Candle Has me lookingHi guys. Always on the lookout for major changes/shifts or Macro signals. Yesterdays 40% increase in Krispy Cream Donuts, has me taking a look into this one.
This analysis is on the 1 week. Note, the current candle is not yet confirmed. Weekly close is obviously on fridays.
I have highlighted 2 zones. COnsolidation range and a Supply zone. We do need to pay attention to these 2 ranges.
BEcause atleast from previous history the supply zone is a resistance zone and thus a sell area. We would need decisive candle closes ABOVE for multi weeks for me to gain confidence that it has flipped to Demand or Support.
Same goes for breaking out of the consolidation range. More info is needed such as confirmation.
But nevertheless, What had me looking DNUT's way, was candle moving past the major resistance trendline that has haunted us since the stock being traded publically.
I would like to note on the weekly timeframe, confirmations have not come in yet, and until proven otherwise it can be a fakeout and can always come back into the consolidation zone. AGAIN, End of week will give us better information.
But it does not take away the fact that DNUT is moving. And atleast for now, DEMAND exists.
VOLUME needs to follow with continued increase.
Things to note in our indicators:
RSI, breaking a major trend by signaling a higher high. But again end of week will clarify this. If it prints, i see it as a positive sign.
STOCH RSI - crossing bullish with is almost above 20 lvl. This indicates possibility of momentum coming in to support an uptrend.
MACD - Has Bullish cross, however we need to see whether or not we can get ABOVE 0 lvl. This would indicate a high probability for a sustainable uptrend.
Being that this weeks candle has not yet closed. It is absolutely important to continue to observe. But DNUT has made it to my watchlist for sure.
Is Krispy Cream Donuts, the Donut for me and you? Well time will tell. LOL.
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DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
