On Demand

STOCKS: Krispy Kreme Poised For New Highs


Krispy Kreme Donuts (KKD) has been in a multi-year consolidation and is finally getting some frosting for new highs.


On November 20, 2012, KKD gapped up on earning guidance. KKD pushed through prior supply over $8.75. If KKD can maintain this gap up, it should start to lift into higher prices.


Any price move maintained over $9.50 is considered bullish. KKD may try to revisit its previous highs around $10.00 and even into $13.00.



Two possible entry ideas:
1) Watch for a pullback into daily demand at $8.50. Keep a tight stop under $8.00 and look for it to build demand to climb over $9.50.
2) Buy any price action over $9.50. Look for targets into $10.00 and then $13.00.

[Editor's note: Peterson has been on a winning streak lately for his stock picks, most recently nailing a Yahoo trade. Learn more about his trading approach here. Do you trade gaps? If you've got questions or comments for Peterson post a comment below.]

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Read more trading ideas here in our daily Markets section.

Strategy article: Learn how to profit from the opening gap.


Join In on this conversation, post a comment below.
TroyPeterson: Good question I work on teaching them how to read Supply/Resistance and Demand/Support if you go those concepts down your off to a good start. Just work on reading where the buyers are located and where the sellers are located and follow. I teach traders to use prior price action as a leading indicator.

About the Author

Troy Peterson is the president of Gap Edge Trading and where he coaches and mentors traders to have an edge in trading stocks with a focus on Gaps.  He teaches an Online seminar on "How to Day Trade Gaps" and Swing Trade Gaps. And also administrates a Swing Trading Newsletter solely based off of Trading Gaps.  Also has a Twitter Alert Service for subscribers that is on a private secure Twitter account with 1-3 trade alerts a day.  Has a proven track record on all his alerts.

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