STARBUCKS CORP is setting up nicely for a breakout.

STARBUCKS CORP (SBUX)       84.26   -2.31 (-2.67%)

After market: 84.47 +0.21 (+0.25%)

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STARBUCKS CORP is setting up nicely for a breakout.11 days ago - Chartmill

STARBUCKS CORP (NASDAQ:SBUX) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:SBUX.

SBUX Daily chart on 2022-09-21

Technical analysis of NASDAQ:SBUX

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, SBUX scores 8 out of 10 in our technical rating. Although SBUX is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

  • The long and short term trends are both positive. This is looking good!
  • SBUX is part of the Hotels, Restaurants & Leisure industry. There are 148 other stocks in this industry. SBUX outperforms 72% of them.
  • SBUX is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
  • Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.
  • When comparing the yearly performance of all stocks, we notice that SBUX is one of the better performing stocks in the market, outperforming 72% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
  • SBUX is currently trading in the middle of its 52 week range. The S&P500 Index is currently trading in the lower part of its 52 week range, so SBUX is still doing slightly better than the market.

How does the Setup look for NASDAQ:SBUX

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:

Besides having an excellent technical rating, SBUX also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 91.31. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 85.96, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NASDAQ:SBUX and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.


SBUX Links


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