Krispy Kreme Doughnuts (NYSE: KKD)

Krispy Kreme Doughnuts, Inc., together with its subsidiaries, operates as a branded retailer and wholesaler of doughnuts, beverages, and treats and packaged sweets. The company operates through four segments: Company Stores, Domestic Franchise, International Franchise, and KK Supply Chain. It owns and franchises Krispy Kreme stores. As of May, 2014, the company had approximately 800 stores in approximately 20 countries in North America, Latin America, Asia/Pacific, the Middle East, and Europe.
Take a look at the 1-year chart of Krispy Kreme (NYSE: KKD) with the added notations:

KKD has been declining since November of last year. Starting in February the stock had found a repeated area of support at $16 (blue). KKD finally broke that support back in the beginning of July, and then rested it as resistance several times thereafter. The stock should be moving overall lower from here.

The Tale of the Tape: KKD had a key level of support at $16. Now that the stock has broken support, a trader might want to enter a short trade at or near the $16 level with a stop placed above that level. A break back above $16 could negate the forecast for a move lower.
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