Stock of the day: Starbucks

In today’s piece, we will focus on Starbucks, so the perfect combination for coffee lovers and traders. Starbucks is currently undergoing a correction and a boring one that sees the price moving sideways with decreasing volatility. Since April, we’ve seen a symmetric triangle pattern (red lines), and every month since then has been less and less volatile.

I guess the time has come to end this. The price is so close to the upper and lower line of the triangle that the breakout has to happen soon. This breakout has a chance to show us a direction for the next few weeks or even months.

The way to trade it is pretty standard. One can think about buying when the price closes a day above the upper red line. An additional bonus here can be that it comes back above the major, long-term up trendline (blue).

On the other hand, the breakout of the lower line of the triangle and the horizontal support on the 109 USD (green) can bring us a signal to sell.

As long as we stay inside, we wait cautiously because the breakout is close!