NASDAQ:SBUX may be ready to 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.

Analyzing the Technical Aspects

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.

We assign a technical rating of 8 out of 10 to SBUX. 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.

• Both the short term and long term trends are positive. This is a very positive sign.
• SBUX is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month SBUX has a been trading in the 94.78 - 103.32 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the performance of all stocks over the past year, SBUX turns out to be only a medium performer in the overall market: it outperformed 47% of all stocks.
• SBUX is an average performer in the Hotels, Restaurants & Leisure industry, it outperforms 43% of 135 stocks in the same industry.

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

Why is NASDAQ:SBUX a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:SBUX has a 8 as its setup rating:

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 102.50. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 100.13, a Stop Loss order could be placed below this zone.

Trading setups like NASDAQ:SBUX

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.