Binge with BROSHello I am the Cafe Trader.
Today we’re looking at Dutch Bros (BROS).
BROS has a soft spot in my heart, as I used to live near Grants Pass OR where they started.
Even without my bias, There’s a lot happening here that points to bullish momentum.
1) It’s important to note that the yellow box is what I call algorithmic suppression — this isn’t real selling but instead this is fabricated selling . This is usually done by short sellers and hedge funds looking to slow down the momentum of a stock. I talk about the "why" on my channel.
2) The Real seller has been challenged and if they are satisfied by the end of the week (above $71) this would seal the deal.
3) New Aggressors have taken a strong position, and they will look to defend this area as the weeks go on.
For these reasons I have 2 scenarios to help you get Long as well as some Value prices for your long term.
Green Scenario
If buyers continue to defend the New Aggressor zone, BROS should make another push back up into the Light Seller area around 79. This should be a partial TP.
A close into or above that seller zone would continue the marching of these bulls.
Red Scenario
We do not know where exactly the top of this New aggressor is yet, but It's strongest case scenario would be 68.80 (This is the most unlikely)
If there is a retrace, the top of Strong Demand is likely where strong buyers will step in. Out of scenarios, I feel better about going ofr the more conservative approach (but who doesn't like a better deal?)
Entry 62.50
Stop 56
TP 1 80
TP 2 Hold for 5+ years - Long Term.
Long Term
If you’re looking to build exposure on BROS, here’s how I’d map the levels based on conviction:
Aggressive: Current demand (72)
Value: Strong Demand (56-62)
Extreme Value: (44-46)
Overall, this looks very bullish for BROS. With algorithmic suppression cleared, and a real seller already taken out of the market (we will know end of week), You may strike gold in the long term.
Happy Trading,
@thecafetrader
