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 worldwide. It owns and franchises Krispy Kreme stores. As of December 12, 2013, the company operated approximately 810 stores worldwide. It also produces doughnut mixes and doughnut-making equipment. The company was founded in 1937 and is headquartered in Winston-Salem, North Carolina.
Please take a look at the 1-year chart of KKD (Krispy Kreme Doughnuts, Inc.) below with my added notations:

Other than a slight setback at the end of August, KKD had been flying high for most of last year. However, the stock had an even larger setback at the beginning of December.
A level that seems to stand out on the stock during the last eight months is $18 (blue). You can see how $18 has been both support and resistance since the end of May. In addition, the stock has also hit $20 as resistance on multiple occasions (red).

The Tale of the Tape: KKD is stuck between key levels of $18 and $20. Traders could enter a long trade at $18, or on a break above $20. A short trade could be made on a break below $18 or on a rally up to $20.
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