Technical Review: Donchian Lower Band Touches 64.11 for Dunkin’ Brands Group, Inc. (NASDAQ:DNKN)

As earnings season kicks into high gear, investors may be analyzing the numbers and trying to decide what to do next. Investors may be choosing to buy companies that have a proven track record of solid earnings growth. Other investors may be looking to spot the diamonds in the rough that haven’t necessarily broken out yet. It may be wise to research companies that continually string together superior quarters. One great quarter or one horrible quarter may not provide enough information to justify either a buy or a sell. Many investors will look deeper into the numbers for companies that produce much wider surprise factors than expected. This may occur on either end of the dial with a beat or a miss. Earnings reports also have the ability to cause severe stock price fluctuations. Some traders will look to catch some profits while others may stay on the bench until the dust has cleared.

The 20 day Keltner Channels upper envelope is 69.59556 on shares of Dunkin’ Brands Group, Inc. (NASDAQ:DNKN). The 20 day Keltner Channels lower envelope is 66.913956. The Keltner Channels indicator was introduced by Chester Keltner in his book How to Make Money in Commodities. Keltner’s ideas have since been expanded upon and are widely used by technical traders.

Checking in on the Awesome Oscillator, we see that the reading is -1.43385. Traders may follow this oscillator to measure market momentum. Created by Bill Williams, the Awesome Oscillator calculates the difference of the 5 period and 34 period SMA.

Following the Chaikin Money Flow indicator, we note that the current 20 day value is 0.117338315. Traders will watch to see if the indicator can help confirm an ongoing trend. In the midst of a bullish trend, the CMF value staying above zero may point to continuous buying pressure and the possibility of a sustained rise in price. In the midst of a bearish trend, the CMF value staying below zero may show continuous selling pressure and the possibility of continued price decline.

Scanning the equity market, we note that the stock’s current Oscillator Rating is showing “Sell”. Traders will take note of many different factors when examining a stock’s health. Flipping over to the Moving Average Rating, we see that the current sentiment is pointing to a “Strong Sell”.

Watching volatility readings, we can see the current value for Dunkin’ Brands Group, Inc. (NASDAQ:DNKN) is 3.6168282. Volatility for the week stands at 2.944934, and the monthly reading is 2.2422993. Volatility involves the amount of risk in relation to the amount of change in a stock’s value. Tracking the Bull Bear Power, we note that the stock is presently -0.20063742.

Shares of Dunkin’ Brands Group, Inc. (NASDAQ:DNKN) ended last session at 67.48. Following today’s trade, we note that the stock has moved -0.41322315% since the opening bell. The company has a current market cap of 5565654500. The stock’s high price over the last month is presently 71.475.

Donchian Channels may be useful for technical traders. The primary function of the indicator is to measure volatility. The bands will widen when volatility is high, and they will become narrow with low volatility. The 20 day upper band level is 70.105. For the same period, the lower band level is 64.11.

Trading on volume of 741556, Dunkin’ Brands Group, Inc. (NASDAQ:DNKN) has seen a change from the open of -0.2624 since the stock opened at 67.7424. Monitoring today’s activity, the stock has hit a high point of 68.47 and slipped to a low of 67.46. 

With the stock market still reaching new heights, investors may be wondering how long the good times will keep rolling. It may be tempting to sell some winners to lock in profits at these levels. Of course, nobody can predict how long the market run will continue, but having a plan in place for the possibility of a downturn might be well worth it. Investors may want to regularly check the balance of the portfolio. There might be a few names in the portfolio that have recently taken off to the upside. This may disturb the equilibrium of the portfolio. Investors may need to be prepared to shuffle some profits into other sectors in order to stay in balance. Being able to ride out unexpected spikes or dips may involve keeping a regular watch on economic data and the overall stability of global markets. Investors who are able to avoid panic selling may be able to more efficiently analyze the data necessary to make informed decisions. Having a cool and collected approach may end up being one of the most important traits that the average investor could develop. Finding the proper methods to stay patient when the markets are in a frenzy might just help the investor ride out extended periods of flux and uncertainty.