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Possible Bullish Inside Day Candle Pattern Detected for Starbucks (NASDAQ:SBUX)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Starbucks (NASDAQ:SBUX) based on the price action in the company's shares. Yesterday's price range of $53.05 and $53.44 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of Starbucks may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Potential upside of 27.7% exists for Starbucks, based on a current level of $53.30 and analysts' average consensus price target of $68.05. The stock should run into initial resistance at its 200-day moving average (MA) of $58.72 and subsequent resistance at its 50-day MA of $58.98.

Starbucks Corporation retails, roasts, and provides its own brand of specialty coffee. The Company operates retail locations worldwide and sells whole bean coffees through its sales group, direct response business, supermarkets, and on the World Wide Web.

In the past 52 weeks, shares of Starbucks have traded between a low of $42.05 and a high of $64.00 and closed yesterday at $53.30, which is 27% above that low price. Over the past week, the 200-day moving average (MA) has remained constant while the 50-day MA has declined 0.2%.

SmarTrend recommended that its subscribers protect gains by selling shares of Starbucks on August 8th, 2016 by issuing a Downtrend alert when the shares were trading at $55.58. Since that call, shares of Starbucks have fallen 4.6%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish am inside day candle Starbucks

Ticker(s): SBUX