My favorite underloved turnaround stock, KKD, broke out today closing above $5.00 for the first time in almost two years. I pointed out in my previous post on KKD that it is most likely in a 3rd of a 3rd of a 3rd wave, and true to form for such a setup, it has failed to pullback to allow traders to get in at lower prices since that post. Earnings are due April 15 AMC, so a poor showing could derail this entire scenario, but with prices breaking out ahead of earnings, I am expecting an upside surprise or other positive announcement. If not, perhaps I will get "kremed", but even so this long term holding has paid off well, and I intend to stick with it until my longer term targets are hit.
The current breakout targets $7.50 to $7.65 based on the trading range and head and shoulders patterns, but any move above $6.75 would suggest that higher prices are possible. Failure on volume below $6.00 would be a concern.