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Morning Cup of Joe: Analysis on Starbucks

Coffee is always a big hit in the
morning so let’s analyze Starbucks stock. In the past nine months, Starbucks
stocks has increased consider, up 33.45%. 
Investors want to know if there is still more upside to the stock.

First off, Starbucks has a high
PE, over 30, this indicates that the market has high expectations for the
company.  In recent quarters, Starbucks
has been increasing profits partly due to lower commodity prices. If you believe that there is still upside
potential to Starbucks, then it might be a good buy, otherwise you might want
to wait until there is a market correction.

Below is a look at some technical
trends that I spotted.

- There is a short term level of support around $70.

- There is an upward trend over the past 9 months, currently the price is touching the bottom trend line.

- The price is currently on the middle Bollinger band.