Starbucks is the latest “coffee play” in a sector led by GMCR.
This is a turnaround story and while the company has stressed cost cutting efforts the market is a believer, gapping the stock out of an indeterminate formation on earnings last week.
Since that time price has traded tightly on diminishing volume. O’Neil considers that very bullish and suggests buying a volume break to new highs.
This morning we’ve got the move but volume is a bit light. The stock trades around 14MM shares a day and is on pace for less than that.
Given that the sector is in favor and the trading action in this stock has been so constructive you might opt to take some shares with a tight stop.
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