Sunday, November 13, 2011 5:37:36 PM
Dunkin Brands (DNKN) -
http://stockpickr.com/5-breakout-trades-avoid-eurozone-fallout.html
>>> Recent IPO Dunkin’ Brands Group (DNKN) is the firm behind the Dunkin’ Donuts and Baskin-Robbins restaurant franchises -- and it’s one of the highest-profile firms to go public in 2011. While IPOs are typically trickier to trade than your average established name, there’s a solid opportunity shaping up in shares of Dunkin’ this week.
Since its first day of trading, Dunkin’ has been locked inside a horizontal channel with resistance at $30 and support at $25, price levels that have each been tested three times since shares started trading; it’s a perfect example of an “if/then trade.” Essentially, if shares break out above $30, then it’s time to be a buyer. If shares break down below $25, then Dunkin’ turns into a short candidate.
Since Dunkin’ is a recent IPO, its trading implications are actually much stronger. From a psychological standpoint, a breakout above $30 means that everyone is sitting on profits on their positions, while a crack below $25 means that everyone who bought shares on the open market is sitting on losses. That factor is going to have a big impact on how eager investors are to unload or pick up more shares as we approach year-end.
Dunkin' was also featured recently in "5 Stocks Poised to Pop off Earnings." For more on IPO trading strategy, check out Stockpickr’s primer on How to Trade an IPO. <<<
http://stockpickr.com/5-breakout-trades-avoid-eurozone-fallout.html
>>> Recent IPO Dunkin’ Brands Group (DNKN) is the firm behind the Dunkin’ Donuts and Baskin-Robbins restaurant franchises -- and it’s one of the highest-profile firms to go public in 2011. While IPOs are typically trickier to trade than your average established name, there’s a solid opportunity shaping up in shares of Dunkin’ this week.
Since its first day of trading, Dunkin’ has been locked inside a horizontal channel with resistance at $30 and support at $25, price levels that have each been tested three times since shares started trading; it’s a perfect example of an “if/then trade.” Essentially, if shares break out above $30, then it’s time to be a buyer. If shares break down below $25, then Dunkin’ turns into a short candidate.
Since Dunkin’ is a recent IPO, its trading implications are actually much stronger. From a psychological standpoint, a breakout above $30 means that everyone is sitting on profits on their positions, while a crack below $25 means that everyone who bought shares on the open market is sitting on losses. That factor is going to have a big impact on how eager investors are to unload or pick up more shares as we approach year-end.
Dunkin' was also featured recently in "5 Stocks Poised to Pop off Earnings." For more on IPO trading strategy, check out Stockpickr’s primer on How to Trade an IPO. <<<
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