Technical Review: KKD, THLD, CXM

Stocks are settling in for a bullish close today, but several of the stocks we came across as potential trades were actually bearish ideas. Of Threshold Pharmaceuticals Inc. (THLD), Cardium Therapeutics Inc. (CXM), and Krispy Kreme Doughnuts Inc. (KKD), two of those three charts actually looked like they were headed lower rather than higher. Let's take a more detailed look.

We actually went bearish on Cardium Therapeutics Inc. (CXM) a few days ago, when - on a weekly chart - the stock's demise became undeniable. If only we had waited a couple more says. Oh well.... we're still in the black.

Yes, CXM is down 25% today. That's not the reason we're pounding the bearish table again. It doesn't hurt, but the reason we bring it up today is simply to illustrate how Cardium Therapeutics - again on a weekly chart - has resumed the very downtrend we highlighted with our last look.

Like we said last time, a return to the January low around $0.50 isn't out of the question for Cardium Therapeutics shares. In fact, there really aren't very many other support levels we can find.

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A little bad news for anybody who owns Threshold Pharmaceuticals Inc. (THLD)... the reversal pattern that's taken shape over the last three days is not likely to be unwound before some damage is done. Don't freak out yet though - there are several potential floors in place.

On the chart below, we've plotted two sets of Fibonacci retracement lines, which established six potential floors for Threshold Pharmaceuticals shares. Too many to fool with? We generally agree, though we're leaning towards the ones at $2.53, $2.18, and $1.69 being the ones most likely to halt any pullback, and send THLD higher again.

Of all those, the one closest to the rising support line (thick, blue) will be the one most apt to act as support - thanks to some help at that rising support line. Right now, that would be the $1.69 level. Depending on how long any move lower takes though, that line may assist one of our other proposed Fibonacci floors.

Confused? Don't overthink it.... we think THLD is headed lower, by more than a little bit.


We almost skipped any exploration of the big surge from Krispy Kreme Doughnuts Inc. (KKD), dismissing it as mere volatility. When we took a step back and looked at a long-term weekly chart though, something fascinating appeared.

Not only are Krispy Kreme shares blasting out of a short-term rut (which isn't a big deal), but they're also blowing past a major -and we mean major - resistance line that extends back to 2007. In other words, this is a trade-worthy breakout we're seeing from KKD.

As for a target level, that's a tough call, and really depends on your timeframe. We can see Krispy Kreme reclaiming the $8/$9 area eventually where it was trading about three years ago (which isn't a huge gain from where it is now). Your timeframe may not be that long though. So, however you're playing this breakout, we just suggest your target for KKD make sense for you.


If you'd like to know of any changes in our opinion of KKD, THLD, or CXM (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered 2 to 3 times per week.