Starbucks Stock Shows Relative Strength To S&P 500
Starbucks was working to print a bullish kicker candlestick, which could indicate higher prices.
Bullish traders want to see the stock regain the 200-day SMA as support.
The recent SBUX rise was attributed to the continued momentum in the stock after Starbucks closed Tuesday’s session up almost 2%. The rise on Tuesday was in opposition to a .41% decline in the S&P 500, indicating Starbucks was showing relative strength. Bullish traders want to see the stock regain the 200-day SMA as support.
It's been a tumultuous time for Starbucks, with more than 200 of its stores seeking to unionize under Workers United, and the equity is reflecting some of this volatility. The stock's most recent rally off its mid-June rout ran into some trouble near the 180-day moving average, while the $90 region has also served as a ceiling since March. Year-to-date, SBUX has shed roughly 27%.
However, after the market close on Sept. 1, the company named Laxman Narasimhan its CEO, which pushed the stock higher by a whopping 2.88% the following trading day. Although the initial reaction to the news was bearish, investors may have gained confidence in Narasimhan after Bank of America analyst Sara Senatore's positive take. On Wednesday, September 7, Citigroup (C) analysts also weighed in on Starbucks. They maintained a neutral rating on the stock, but raised the price target from $90 to $94.
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