Chart of the Day: Dutch Bros Is Just Taking a Coffee Break From Its Uptrend
We recently added this name to the portfolio and continue to look for entry points.
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After a massive drop on high volume, Dutch Bros BROS has started to stabilize a bit below the 200-day moving average. This is a critical time for the stock as we see if big buyers are truly interested in adding this name at bargain prices. The uptrend that launched the stock in May from these EXACT levels was impressive, but now we must start over again.
That's fine as long as the current level holds. We would like to see a nice basing period to commence, a few weeks to a month of sideways action to see if the high $20's holds for investors. We added more shares just this morning.
Money flow is starting to improve (bottom pane), but the candles are pink/purple, so bearish on the GoNoGo indicator. Moving Average Convergence Divergence (MACD) is pretty oversold here, though, and if the volume starts to decline with prices at this level we could look for buyers to come in.
We rate BROS a One in TheStreet Pro Portfolio.
More Pro Portfolio:
- We're Initiating a New Position in This Oversold Bullpen Stock
- Weekly Portfolio Roundup: Opportunity Was the Name of the Game
- We've Got the Scoop on Our Stocks
At the time of publication, TheStreet Pro Portfolio was long BROS.
