Chart of the Day: Dutch Bros Is Brewing a Fresh Batch of Highs
We are watching this Bullpen name closely for an opportunity to start a position.
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Without question, Pro Portfolio Bullpen name Dutch Bros BROS has taken full advantage of Starbucks' SBUX missteps. The giant in the coffee retail business has fallen on hard times recently with pricing that is too high and simply missing what their customer wants. They will eventually turn it around, as they usually do, but in the meantime BROS is moving into their territory.
Dutch Bros stock has been on a monster run since late April, scoring new highs recently and holding those during a consolidation period. While the indicators are not flashing buy just yet, the recent turn up in the money flow indicator (bottom pane) appears bullish.
Moving Average Convergence Divergence (MACD) and stochastics are flattening out, which simply means the stock is pausing here. We can also see that happening in the top pane — the stock runs into resistance each time it tries to make a move above $40.
Where might we start adding BROS? Perhaps an opportunity lower and towards some moving averages, which the stock is well above currently.
Eventually the stock will look to resume its uptrend as institutional buyers climb on board. We'll be watching for a buying opportunity to unfold.
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At the time of publication, TheStreet Pro Portfolio had no positions in any securities mentioned.
