SBUX breaks above 20-day moving average for the first time since February 20th
Starbucks Corporation (SBUX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SBUX ended Thursday at 69.90 gaining $4.09 (6.21%), slightly outperforming the Nasdaq 100 (5.72%). Closing above Wednesday's high at 69.64, the share confirmed its breakout through the previous session high after trading up to $1.93 above it intraday.
Daily Candlestick Chart (SBUX as at Mar 26, 2020):
Thursday's trading range has been $5.32 (7.97%), that's slightly above the last trading month's daily average range of $5.24. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for SBUX.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, SBUX gained 1.43% on the following trading day.
The stock managed to close above the 20-day moving average at 68.36 for the first time since February 20th. Prices are trading close to the key technical resistance level at 74.95 (R1).
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Starbucks. Out of 177 times, SBUX closed higher 55.93% 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 55.93% with an average market move of 0.30%.