Chart of the Day: Dutch Bros Is Ready to Heat Up
Earnings are on tap, and we'll see if they are taking some share against larger competitors like Starbucks.
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The coffee is brewing at Dutch Bros BROS. The upstart coffee chain, a holding in TheStreet Pro Portfolio, is looking to make a move following its next earnings report (due out November 6 after the close). Recall the last time BROS reported in early August the stock was hit hard by poor guidance but also the market was getting drilled, too.
Interestingly, however, the stock has found very strong support in the high $20's area. That's the good news, but the bad news is BROS just cannot seem to break free from resistance (call it $34). The indicators are mostly neutral but trying to turn bullish.
Stochastics are turning up, and that is good for stock momentum. The chop index (pane 3) is flattening out, reflecting the flatness of the stock chart. Moving Average Convergence Divergence (MACD) is bearish but is looking to make a turn; money flow is weak but turning up.
We like BROS in TheStreet Pro Portfolio, rating it a One. If the stock can finally break resistance we see a move to $40.
At the time of publication, TheStreet Pro Portfolio was long BROS.
