America’s Favorite Coffee Brand Sets Up For A Big Move

With the rally that going on, accompanied by a decent pull back to start the week off, it’s time to look for long opportunities. If we look at the market, we can establish our primary trend, which for now is higher. Today, our secondary trend, a shorter time frame trend, seems to be down. However, we view this as a healthy pullback in the market, making room for another run higher.

So, what individual names can we look at to take advantage of both our primary and secondary trends? Let’s take a look!

Starbucks (SBUX) broke out of a declining wedge formation, this is typically looked at as a bullish sign and implies a run higher. As you can see on the chart in my video below, the price has fallen pretty consistently for the past couple weeks, forming this declining wedge pattern from the high near 111. The break out of this pattern is not quite enough to establish this trade, but it does raise a few alarms.

If the price breaks and holds above this wedge, then we would look to enter the trade in anticipation for the stock price to continue higher. A pullback, like the one we are seeing today, should give the wedge trendline a retest, if the test holds, this pullback is a great opportunity to enter the long trade. Expect this stock to largely follow what the broader market is doing and use indexes like the S&P 500 to spot a good entry point.

Watch the full video for more details!

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