Starbucks Corp. (SBUX) has become synonymous with coffee and a lot of other things in our society. They and many other specialty coffee companies turned around a decades long decline in coffee consumption and pretty much eliminated that office coffee pot with stale, burnt coffee.
They invented a new language for drinks and created tasty drinks that no one imagined a few years ago. They are a global brand that globe trotters can find nearly everywhere. Does that make its stock a good investment? Let's check the charts and indicators.
In this daily bar chart of SBUX, below, we can see that prices have been in a broad sideways trading range. Prices are currently above the 50-day and the 200-day moving average line and they have crossed above and below them several times during the past year.
The daily On-Balance-Volume (OBV) line has moved up and down with the price action and has not shown us a sustained direction.
The Moving Average Convergence Divergence (MACD) oscillator is currently above the zero line indicating a positive trend but bullish signals from this indicator have not lasted long.
In this weekly bar chart of SBUX, below, we can see that prices have been in a sideways trading range for nearly three years. Prices have crossed above and below the 40-week moving average line many times. SBUX is currently above the declining 40-week line.
The weekly OBV line shows a decline from around June 2016 but also some improvement from July of 2017. Standing back from the chart and looking at the OBV line gives me a slight bearish bias.
The weekly MACD oscillator has not been indicating any bias as it has stayed close to the zero line for months.
In this weekly Point and Figure chart of SBUX, below, we can see both a huge rally and an extended sideways trend. This chart could go either way - break out to new highs or break down.
Bottom line: Without a strong bullish or bearish bias from the indicators, SBUX is likely to continue to frustrate bulls and bears. Strength above $62 or weakness below $53 would change the situation.