SBUX – Starbucks

I identified a trading range for SBUX’s share price in this previous article “9/7/2017 – Starbucks (SBUX) Temperature Below Normal“.

SBUX is approaching the upper end of the trading range. There is a chance that SBUX is ready to break through the upper end of the trading range based on the continued increase of buying momentum. But if it reaches the top and starts to pull back in the next couple of weeks, that pullback would be one of great interest. That would be the pullback to start acquiring shares for a longer-term holding and breakout.

If by chance SBUX does break above the Trading Channel, the aggressive traders can trade it up to the upside price target.

The non-aggressive traders would wait for the pullback from that breakout and look to enter the trade then to make sure the breakout is confirmed before proceeding. This strategy does not always work though as not all breakouts pullback immediately to retest the breakout area. Most do though.