Starbucks () rallied from $35.38 to $64.00 (A-B), pulled back to $52.63 in early 2016 (C) and then settled in a horizontal trading range mostly between $53 and $59 (dashed lines). The recent rise above $60 (D) signalled a breakout from the trading range and the start of a new up-leg. Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the positive status. Only a sustained decline below ±$57 would be negative. Point & Figure measurements provide targets of $69 and $74. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Monica Rizk
Ron Meisels