Dunkin' Brands Group Inc. (DNKN) was upgraded to a buy today by theStreet.com's quantitative service. After looking at the charts of Starbucks (SBUX) today I was curious to see whether DNKN had a similar pattern. Let's check.
In this daily bar chart of DNKN, below, we can quickly see that DNKN has been in an uptrend the past twelve months - way stronger than the sideways to lower pattern on Starbucks. Prices are currently testing the rising 50-day average line on DNKN. The 200-day line is bullish and intersects down around $63. The daily On-Balance-Volume (OBV) line has been firm the past twelve months and suggests that buyers of DNKN have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has turned down to a take profits sell signal but is still above the zero line.
We see a bullish alignment of the indicators here in this weekly chart of DNKN, below. Prices are above the rising 40-week moving average line. The weekly OBV line has been moving up the past four months and the MACD oscillator is bullish on this longer time frame.
In this Point and Figure chart of DNKN, below, we can see an upside price target near $83 for the coffee chain.
Bottom line: DNKN has pulled back modestly on the daily bar chart but remains bullish on our other charts (above). After a period of some further sideways to lower price action I look for DNKN to resume its uptrend with an $83 price target.