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eGoose Market Call for members...
KKD: Krispy Kreme Doughnuts has been on our target short watch list for many days and, in fact, we have shorted many times, waiting patiently for new low risk opportunities. The above is a weekly chart. Although no doubt that KKD is in a powerful uptrend, it is simply overbought on multiple time frames. As you can see, the weekly bar closed with a Japanese "hanging man," a short-term reversal signal after an extended run. Last Friday's bar was a huge bearish engulfing bar, also suggesting lower prices. The daily OBV, RSI, CCI, MADC Histogram, stochastics, money flow, and price volume trend are all overbought and rolling over. The red rising trend line gives a target between 62-63, just above the 38.2% Fibonacci retracement shows from the low on the week of 4/6. this is alto where a prior overbought reversal area failed; however, the "measured move" from that failure has been satisfied with last week's gains. The most recent runup was partially due to short covering. KKD had approximately 28 millinon shares outstanding after the march split, although only 11.5 million were eligible for trading. By the end of April, another 14.8 million shares were released from lock up. As of mid-May, short interest had fallen to 5.9 million shares from a peak of 9.9 million in mid-March. Those shorts undoubtedly felt great pain, but the technicals are suggesting that the buying euphoria is coming to an end. Horizontal support with a 50% Fibonacci retracement would give a target around 52-53. Consider SHORTING KKD with a limit of 71.25. Suggested target is OPEN. Suggested stop is 72.70. To view the chart for today's selection, click: http://www.worldwidetraders.com/eGoose20010604.pdf. Make sure you review the eGoose Gap Rules on how to play suggested trades, which may be found following today's chart on the link above. For a FREE two-week trial of the eGoose Live Trading Room and Swing Advisory Letter, click: http://www.egoose.com/swing_trading.asp?assoc=yes To review prior eGoose picks for DayTradersUSA, visit: http://www.worldwidetraders.com/marketcallpublic.htm --- You are currently subscribed to dtusa as: alewis@ect.enron.com To unsubscribe send a blank email to mailto:leave-dtusa-1220700P@nova.sparklist.com
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