Coffee retailing giant Starbucks, Inc (SBUX) continues to push higher in unabated fashion. Since its August 2012 lows the stock has rallied more than 50% and this year alone the stock is higher by 21%. When will it all end? I’m not sure that’s a question worth asking yet, although being on the lookout for any major one or multi-day bearish reversals is always prudent to do. For now, the trend remains my friend, until it ends.
Looking back 10 months, the stock continually forms consolidation pattens that allow the stock to rest up for another leg higher. So did for example the consolidation phase from March through late April 2013 ready the stock for its sharp move higher into a mid-May top, which then again led to a couple of weeks of consolidation.
More importantly as it relates to the right here right now, last Friday June 7th Starbucks, Inc (SBUX) marked its daily chart with a solidly bullish candle.
After retracing 38.20% (an important Fibonacci support area) of the strong April – May rally, Starbucks, Inc (SBUX) rebounded nicely intraday last Thursday. On Friday the stock opened strong right out of the gate by gapping higher and never looked back all day. The stock’s 3.25% rally on Friday resulted in a new all-time high and hence also a move past the late May highs. From here, even though the stock trades at all-time highs, upside momentum remains on the side of the stock. I am not one for chasing stocks higher, but the late May-early June consolidation phase has once again led to a new breakout in the stock. A push up toward the $66.50 – $67 area is feasible here.