STARBUCKS CORP (NASDAQ:SBUX) - A Technical Breakout Candidate Worth Watching

STARBUCKS CORP (NASDAQ:SBUX) has been flagged by our technical breakout screen as a stock with promising setup potential. The company, a global leader in specialty coffee retail, currently shows a combination of solid technical strength and a high-quality consolidation pattern. Below, we break down the key factors that make SBUX an interesting candidate for technical investors.

Technical Strength

• Technical Rating of 7: SBUX scores above average, indicating a healthy technical trend. Both short-term and long-term trends are positive, reinforcing the stock’s upward momentum.
• Relative Strength: The stock outperforms 76% of the market over the past year, though much of this strength comes from a rally about 10 months ago.
• Moving Averages: The stock trades above its 20-day and 50-day moving averages, confirming near-term bullishness. However, it remains below the 100-day and 200-day averages, suggesting some medium-term resistance ahead.
• Volume & Liquidity: SBUX maintains strong average daily volume (10.38 million shares), ensuring good liquidity for traders.

Setup Quality

• Setup Rating of 9: This high score reflects a well-defined consolidation pattern, with prices stabilizing in a tight range between $89.08 and $95.91 over the past month.
• Support & Resistance: A clear support zone exists between $90.47 and $94.46, while resistance sits near $94.95 to $95.39. A breakout above $95.40 could signal a new upward move.
• Volatility Contraction: Reduced volatility in recent weeks suggests a potential buildup for a decisive move.
• Institutional Interest: Large players have shown increased activity in SBUX, a positive sign for breakout potential.

Trade Setup Suggestion

The technical report suggests a possible entry at $95.40 (just above resistance) with a stop-loss at $90.46 (below support). This setup implies a 5.2% risk per trade, making position sizing critical.

For more details, review the full technical analysis report for SBUX.

Our Technical Breakout Setups screener lists more breakout candidates and is updated daily.

Disclaimer

This is not investment advice. Always conduct your own analysis and consider risk management before trading.