Starbucks Testing Large Triangle Support

By | September 18, 2016

A large triangle pattern has formed over the last nearly one year on the Starbucks (SBUX) daily chart. The stock price has made a series of lower highs above a horizontal support line, and it has underperformed the S&P 500 index by 13% year-to-date, and 31% over the charted period. Over the last two sessions hammer-like candles have formed just above the support zone, even as the S&P index is testing its own support zone on its chart. It seems like a likely place for a bounce, but anything is possible and the integrity of this zone should be monitored, as it could determine the intermediate term direction of the stock.

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