SBUX pushes through Thursday's high
Starbucks Corporation (SBUX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
SBUX finished the week 1.24% higher at 56.45 after surging $1.59 (2.9%) today, slightly outperforming the Nasdaq 100 (2.77%). This is the biggest single-day gain in over five months. The last time we've seen such an unusually strong single-day gain on Tuesday, SBUX actually lost -2.95% on the following trading day. Closing above Thursday's high at 56.27, the stock confirmed its breakout through the previous session high after trading up to $0.51 above it intraday.
Daily Candlestick Chart (SBUX as at Oct 12, 2018):
Friday's trading range has been $1.50 (2.69%), that's above the last trading month's daily average range of $1.08. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SBUX.
Starbucks Corp. managed to break above the 200-day moving average at 55.82 today. Prices are trading close to the key technical resistance level at 57.57 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for Starbucks Corp.. Out of 46 times, SBUX closed higher 60.87% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 65.22% with an average market move of 0.73%.