Coffee Breakout
With many
“old economy”
stocks performing well of late, some of the consumer-oriented issues are
starting to look interesting. In fact, it was no coincidence that I spotted one
interesting setup while sipping a cup of my favorite Starbucks blend.
It’s always nice to see a chart
pattern set up around a confluence of factors. Starbucks (SBUX)
is bouncing off of its 50-day moving average as well as off of a 50% retracement.
With many stocks currently breaking out of pattern setups Thursday, it looks
like Starbucks has not made its move yet. The coffee king finished the day up 1
3/8 to 47 9/16 on heavier-than-average volume.
Looking ahead, it would be
constructive for Starbucks if it can continue to rise on increasing volume.
Till Thursday,
Eddie