Starbucks Corp. (SBUX) is expected to its fiscal second-quarter results after the market closes on Tuesday. Let's get a grande and check out the charts and indicators.
In this daily bar chart of SBUX, below, I can see that prices have been in an uptrend the past 12 months. SBUX is trading above the rising 50-day moving average line and above the rising 200-day moving average line. The trading volume has not increased during the advance but the On-Balance-Volume (OBV) line shows us a positive trend from last May. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of SBUX, below, I see a bullish picture. Prices are in a strong upward trend and the latest long white (bullish) candle shows no sign of weakness. SBUX trades above the rising 40-week moving average line. The weekly volume histogram shows a declining volume trend but the weekly OBV line shows a bullish pattern with buyers being more aggressive than sellers. The MACD oscillator is above the zero line and crossing upward for a new outright buy signal.
In this daily Point and Figure chart of SBUX, below, I can see that prices reached and exceeded a price target of $110.
In this weekly Point and Figure chart of SBUX, below, an upside price target in the $148 area is shown.
Bottom line strategy: I don't know what SBUX may tell shareholders and analysts after the close of trading Tuesday, but the charts and indicators are positive and traders who are long should continue to hold. Aggressive could buy available weakness ahead of earnings. Risk to $107. The $148 area is my price target.
