SBUX still stuck within tight trading range
Starbucks Corporation (SBUX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
SBUX finished the week 0.25% higher at 63.73 after losing $0.46 (-0.72%) today, slightly underperforming the Nasdaq 100 (-0.3%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SBUX as at Jan 11, 2019):
Friday's trading range has been $2.16 (3.47%), that's above the last trading month's daily average range of $1.62. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 61.68 and 64.39 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 64.29 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 64.39 where further buy stops might get activated.
Among the three 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 617 times, SBUX closed higher 51.86% 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 58.83% with an average market move of 0.84%.