Stock of the day: Starbucks

Today, we are returning to Starbucks, which we previously mentioned in our analysis on the 24th of June. Back then, the price was inside of a very promising technical pattern and we were warning our traders about the possible breakout:

“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.”

As you may expect, the breakout did happen. The direction was not as big of a surprise as the main trend on the market, which was to the upside. Straight after the breakout, the price hesitated a little bit and went a bit lower to test the broken resistance as a closest support. The support held and the price went higher.

The last two sessions were really great for the shareholders here as the price broke the horizontal resistance on the 113 USD and came back above the long-term up trendline (blue). As long, as we stay above those two, the sentiment is positive.

Today, there is no trading as Americans are enjoying the Independence Day long weekend but the mid-term sentiment seems settled anyway and it is bullish.