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SBUX is Trading Above Old Resistance at $69

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We are opening a new bullish trade on Starbucks (NASDAQ: SBUX ). This will be the second put write we've recommended on SBUX this year, and we are expecting this trade to be just as successful as the last one .

Focusing on Growth

We have been watching SBUX closely to see if the stock would pull back after the former CEO began talking about a potential run for president in 2020, but the stock continues to stay above its previous resistance level at $69.

This is a good indication traders aren't too concerned about any of Howard Shultz's campaign comments having an impact on the stock.

Instead, we still anticipate traders will be focusing on the company's strong growth potential - SBUX experienced global comparable store sales growth of 4% and added 541 net new stores during the previous quarter - and strong dividend.

$69 Resistance is Now Support

Our regular readers know old resistance often becomes new support. SBUX traded above $69 a little over a week ago, and now it may drift back down to re-test $69 as support. We expect it to hold, and SBUX could head higher if it does.

Daily Chart of Starbucks (SBUX) - Chart Source: TradingView

Since the selloff in December 2018, SBUX has been gradually heading higher and higher. It crossed above its 50-day moving average in mid-January, and it established support at around the $65 level.

With the stock just above $70, now would be a great time to sell puts near SBUX's current support.

To find out which SBUX puts we're selling - and to get access to our full portfolio of income-generating trades - consider signing up for risk-free trial subscription to Strategic Trader today.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of Strategic Trader .

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The post SBUX is Trading Above Old Resistance at $69 appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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