Starbucks Pulls Back
Restaurant stocks had a big surge last month thanks to 
Chipotle Mexican Grill’s monster quarter. Starbucks went along for the ride and has now pulled back.
The main thing on today’s chart is SBUX’s gentle retest of $118. That was an old high from April. Traders may now watch for it to become support, especially with the coffee chain having exited a 3-4 month basing pattern.
Some of the price action suggests it may be stabilizing. Notice the widening candles on August 2 and 3, followed by an inside candle yesterday. Another smaller candle is trying to form today.
If the current level fails, investors may next look to the 50-day simple moving average (SMA) less than $3 lower.
The fundamental story is also strong, with earnings, revenue and guidance all beating on July 27.
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Chipotle Mexican Grill’s monster quarter. Starbucks went along for the ride and has now pulled back.The main thing on today’s chart is SBUX’s gentle retest of $118. That was an old high from April. Traders may now watch for it to become support, especially with the coffee chain having exited a 3-4 month basing pattern.
Some of the price action suggests it may be stabilizing. Notice the widening candles on August 2 and 3, followed by an inside candle yesterday. Another smaller candle is trying to form today.
If the current level fails, investors may next look to the 50-day simple moving average (SMA) less than $3 lower.
The fundamental story is also strong, with earnings, revenue and guidance all beating on July 27.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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