One caller Thursday night during the popular Lightning Round segment of Mad Money asked about Starbucks Corp. (SBUX) . "I think this one can rally another $10," replied Jim Cramer the host of the popular investing program.
Let's order a latte and check out the charts of this Action Alerts PLUS holding.
In the daily bar chart of (SBUX) , below, we can see that prices are in an uptrend for the past 12 months. Prices are above the rising 50-day moving average line as well as the rising 200-day moving average line. The 50-day average line looks like it has just slipped below the 200-day line but I suspect that condition will not last long and the 50-day line will be back above the 200-day line for a bullish golden cross.
The trading volume looks like it has been heavier since November as prices have been improving. Rising volume with rising prices is a bullish combination that chart readers love to see. The daily On-Balance-Volume (OBV) line has been steady since August -- even when prices declined in September and October. The OBV line is constructive and not far from making a new all-time high.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in positive territory and poised to turn upward to a fresh outright go long signal.