Starbucks has been charging up all year on positive growth and strong fundamentals, and in fact, I recommended the stock not too long ago for a short-term trade. Since then, the stock has been consolidating around the middle of its Keltner channel, giving traders additional time to enter the trade, so I wanted to reiterate my bullish rating. If bulls keep up their recent habits, it will be bought again around this area.
SBUX shares slipped 0.3% on Wednesday, but they are still in good shape as they consolidate around the middle of the uptrend channel. The dip gives new money a great chance to enter a short-term trade.
Recommendation: Buy SBUX at current levels for an $85 target.
Jon Markman operates the investment firm Markman Capital Insights. He also writes a daily trading newsletter, Trader’s Advantage, and CounterPoint Options, a service geared towards helping individual traders make steady, consistent profits with the VIX. Follow Jon Markman at Google+.