Will STARBUCKS CORP breakout?

Our stock screener has identified STARBUCKS CORP (NASDAQ:SBUX) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NASDAQ:SBUX.

What is the technical picture of NASDAQ:SBUX telling us.

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, SBUX scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, SBUX is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• SBUX is one of the better performing stocks in the Hotels, Restaurants & Leisure industry, it outperforms 72% of 137 stocks in the same industry.
• In the last month SBUX has a been trading in the 90.55 - 107.66 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, SBUX did better than 78% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• SBUX is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so SBUX is lagging the market.

Our latest full technical report of SBUX contains the most current technical analsysis.

Why is NASDAQ:SBUX a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:SBUX this score is currently 8:

SBUX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 101.43, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NASDAQ:SBUX

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.