To The Moon

$Krispy Kreme, Inc.(DNUT)$ $Opendoor Technologies Inc(OPEN)$ $American Eagle Outfitters(AEO)$ 🍩📈🚀 Donut miss this move: $DNUT just filled its gap and ignited a new meme-stock rally 🚀📈🍩

I’m really confident that $DNUT is no longer just a bakery stock; it’s become a momentum magnet. The technical setup has completed a full rounded bottom reversal, surged past declining moving averages, and just printed a clean breakout above $3.92, confirming a gap-fill thrust with volume-backed acceleration. It’s not just retail sugar high either; there’s institutional fuel in the batter now.

🍩 Technical ignition: a breakout with velocity

Price is currently trading at $4.49 after a dramatic surge from the recent $2.50 low. That’s an explosive 80% move off bottom, driven by a massive spike in volume and momentum indicators confirming conviction. The MACD has crossed bullish for the first time since April, RSI(6) hit 71.26 (nearing breakout territory), and price just launched through the 20-week MA ($3.70) and the 30-week MA ($5.28) is now a realistic near-term magnet.

On the 4H chart, the parabolic candle from $3.30 to over $5.80 had textbook gamma-squeeze characteristics; shorts covering into a vertical call wall while market makers scrambled to hedge. While there was a pullback, it held higher lows on the next candle. That’s a high-probability bullish continuation setup.

💥 Options gamma squeeze: same recipe, new flavour

This week, meme stocks rotated fast: $OPEN on Monday, $DNUT yesterday, $GPRO today, and now $AEO. The same 3-step gamma squeeze formula applied:

1. Identify a stock with high short interest and low float.

2. Load up on at-the-money call options, triggering market makers to buy underlying stock to hedge.

3. Amplify visibility through social chatter and trader forums.

$DNUT fits this model perfectly. While official short interest hovers around ~18%, real-time data shows elevated borrow rates and illiquidity conditions that made it highly susceptible to a gamma pop. The call wall was positioned near $4.50, and the vertical move broke that threshold before fading slightly. This implies market makers were actively hedging in real-time, pushing the stock up rapidly.

🔍 Fundamental momentum: not just fluff

On 22Jul25, Krispy Kreme appointed a new CFO, Josh Charlesworth, signaling a strategic financial reset. That alone may not cause a melt-up, but when paired with meme-fueled options aggression, it created the spark. Charlesworth previously led multiple global expansion rollouts, and institutional eyes are now watching how he handles DNUT’s capital allocation and supply chain scaling.

Additionally, the company is quietly executing. In May, Krispy extended its McDonald’s partnership to roll out fresh donuts in over 2,600 US locations. That’s now expanded into pilot programs internationally, according to a leaked internal report reviewed by Benzinga.

🍩 Hedge fund activity and analyst outlook

13F filings from Q2 show increased positions from two large hedge funds; Millennium Management and Point72. They built fresh positions in the low $3s during the June selloff. That’s a strong signal that the valuation was too cheap to ignore.

Analysts remain mixed, but Baird recently reiterated an $8 price target, citing expanding distribution channels and operational leverage. JPMorgan kept a Neutral but flagged the stock as a potential volatility magnet during low-float squeezes. The average Wall Street target is now $6.25, up from $5.80 last quarter.

🌐 Meme-stock rotation context

This week’s rally across names like $OPEN (+14%), $AEO (+25%), and $GPRO (+12%) was no accident. Traders are engineering coordinated gamma events, often after short interest scans. Kohl’s showed us how fast this can escalate, ripping 105% intraday with no news, just a perfect cocktail of short pressure, options flow, and social momentum.

The same sentiment is now fueling $DNUT. In fact, engagement mentions have surged 630% in the last 48 hours across trader forums. That kind of virality is often the early-stage indicator of round two or even round three.

🧭 Forward setup: what I’m watching next

If $4.50 holds, I’m targeting a secondary leg toward $5.28 (30W MA) and then $6.24 (May breakdown gap). A clean break above $6.24 puts $8 back in play, which is where analysts from Baird and Loop Capital are anchored.

Key levels I’m tracking:

• Support: $3.92, $3.30, $2.85

• Resistance: $4.50 (current zone), $5.28, $6.24

Options flow will remain critical. I’m watching for new open interest above $5 strikes and any short-dated call sweeps with elevated IV. A spike in implied volatility with stagnant underlying movement could hint at a reload before the next leg.

🍩 Conclusion: DNUT is no joke, this is a calculated ignition

This isn’t about glazed donuts anymore; it’s about liquidity, leverage, and narrative timing. Krispy Kreme just became the focal point of the latest meme-stock rotation. The squeeze already lit the first match, but the structure and sentiment tell me it’s not done. There’s real institutional positioning beneath the hype, and the market’s showing respect by holding key breakout levels even after the surge.

I’m fully engaged here and mapping out higher timeframes for continuation. If volume sustains and momentum flows don’t evaporate, I believe $DNUT could be the next meme stock that actually sticks.

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Trade like a boss! Happy trading ahead, Cheers, BC 📈🚀🍀🍀🍀

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