SBUX closes higher for the 3rd day in a row
Starbucks Corporation (SBUX) Technical Analysis Report for Jan 10, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SBUX ended Thursday at 64.19 gaining $0.31 (0.49%), slightly outperforming the Nasdaq 100 (0.31%). Closing above Wednesday's high at 64.04, the market confirmed its breakout through the previous session high after trading up to $0.34 above it intraday.
Daily Candlestick Chart (SBUX as at Jan 10, 2019):
Thursday's trading range has been $1.14 (1.79%), that's below the last trading month's daily average range of $1.56. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SBUX. Prices continued to consolidate within a tight trading range between 62.08 and 64.38 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on September 26, 2018, SBUX actually gained 0.12% on the following trading day.
Unable to break through the key technical resistance level at 64.29 (R1), the share closed below it after spiking up to 64.38 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 62.95 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Starbucks. Out of 616 times, SBUX closed higher 51.95% 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 58.77% with an average market move of 0.84%.