Starbucks is the 5th largest company in the consumer discretionary sector by market cap. Having said that, it has largely missed out on the outperformance of the sector vs the S&P 500 during this rally and is trading significantly below the prior highs of the year.
Starbucks flagged a “Go” on August 10th and the trend has remained intact. Recently, we saw a low risk entry point as the GoNoGo Oscillator rallied off zero.
On Friday, price broke above a recent high, setting the stage for a test of the pre coronavirus highs.
If price consolidates above 84, then it is realistic to look for the coffee giant to brew up a rally which would test the highs around 94, and in doing so catch up with the rest of the consumer discretionary sector.
Starbucks flagged a “Go” on August 10th and the trend has remained intact. Recently, we saw a low risk entry point as the GoNoGo Oscillator rallied off zero.
On Friday, price broke above a recent high, setting the stage for a test of the pre coronavirus highs.
If price consolidates above 84, then it is realistic to look for the coffee giant to brew up a rally which would test the highs around 94, and in doing so catch up with the rest of the consumer discretionary sector.