Friday, September 20, 2013

Buy Coffee Stock's Breakout for the Chance at Fast Profits: Green Mountain Coffee Roasters (NASDAQ: GMCR)

Green Mountain Coffee Roasters (NASDAQ: GMCR) is a favorite among traders and the financial media, not to mention among java lovers in the ever-growing coffee culture in the United States. The stock's volatile swings during the past few years were enough to satisfy even the most voracious appetite for volatility. In recent months, GMCR has settled into a consolidation phase, but now looks poised for a breakout.
Before looking at GMCR's chart, I'd like to note the dramatic slide in the price of coffee futures during the past two and a half years. After topping in May 2011, coffee futures have slipped more than 60% and continue to fall.
Coffee Futures Chart
While there is no direct inverse correlation between the price of coffee futures and the stock of Green Mountain Coffee Roasters, it certainly would be difficult to make the case that lower input costs are hurting the company. So, from a fundamental point of view, as I walk through the charts below, keep in mind that lower input costs should be a positive for the stock. (more)
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