See the price of coffee KC1! has doubled this year: from just over 1/LB to over 2/lb.
Note: Retailers are weak. Economy is flat. People spent their money on home heating oil and high energy costs and have been cutting back on discretionary coffee purchases. Perhaps the K-Cup is eating into SBUX business. $1 at home instead of $5 out at the local Starbucks.
Technically, the last rally should have taken out any weak shorts and it maintains a nice downward trend with a very visible "level of maximum supply" at 77 that I have labeled. You can see that over 20 days of trading action have occurred at that price and it represents supply or "breakeven- itis" selling that can take place. Those who bought there are happy to exit at breakeven.
Good trading to you.
Tim 2:34PM EST, 3/13/14
תגובות
A-shot
⋅
Great call here too!
calatis
⋅
Good call on the short. Good explanation. Nice support here but i'd like to see it close gap 68.30. Also keep in mind Earnings. My target was $70 and exited. Don't like holding through earnings as stocks tend to be sporadic. It's usually a crap-shoot.
ChrisMoody
⋅
I disagree with one thing...No matter how high my heating bill gets I'm getting my Starbucks...And so are other people...It's legalized Crack....
But I did like how you backed up your technical pattern with their costs doubling...Can't argue with that....
timwest
⋅
Thanks Chris. Perhaps those who are "on the cusp" or "living paycheck to paycheck" will cut back on a new shirt or new clothes in order to keep the smart-phone lit up and the Starbux in the cup. I appreciate the feedback, anytime.