Stock Trading

Stock Technical Analysis: Starbucks is a Star Buy

Starbucks stocks (SBUX) surged on July 22 on four times its average volume after the company announced better than expected Q3 earnings due to effective cost-cutting measures in place. This spike in volume is significant because it is a sign of institutional buying, providing the fuel necessary to prolong the rally.

Technical analysis of the stock price shows a pennant pattern forming as the stock consolidated for the subsequent 5 trading days. The bullish pattern was finally completed on 30 July, when the stock rallied above the pennant formation on above average volume.

Change: Buy SBUX