SBUX pushes through Tuesday's high
Starbucks Corporation (SBUX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SBUX finished Wednesday at 88.38 gaining $0.67 (0.76%), significantly outperforming the Nasdaq 100 (-1.67%). Today's close at 88.38 marks the highest recorded closing price since February 20th. Closing above Tuesday's high at 88.25, the share confirmed its breakout through the previous session high after trading up to $1.18 above it intraday.
Daily Candlestick Chart (SBUX as at Sep 16, 2020):
Wednesday's trading range has been $1.68 (1.91%), that's slightly below the last trading month's daily average range of $1.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SBUX.
Prices are trading close to the key technical support level at 87.07 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, the market has entered a so-called "Golden Cross" for the first time since March 4th. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon. When the last "Golden Cross" happened on October 30, 2018, SBUX actually lost -0.55% on the following trading day.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Golden Cross" stand out. Its common bullish interpretation has been confirmed for Starbucks. Out of 5 times, SBUX closed higher 80.00% 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 80.00% with an average market move of 4.11%.