Starbucks Corporation (NASDAQ: SBUX)

Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; and Channel Development. The company’s stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single serve products, and juices and bottled water. Its stores also provide fresh food offerings; ready-to-drink beverages; and various food products, such as pastries, and breakfast sandwiches and lunch items, as well as beverage-making equipment and accessories.
Take a look at the 1-year chart of Starbucks (NASDAQ: SBUX) below with my added notations:

SBUX has formed a relatively clear up-channel chart pattern over the last 5 months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to channels, remember that any (3) points can start the channel, but a 4th point or more confirms it. You can see that SBUX has several points of channel resistance (red) and support (blue).

The Tale of the Tape: SBUX has formed an up-channel. A long trade could be entered on a pullback down to the channel support, which is currently approaching $56. Short opportunities would be on rallies up to channel resistance, which the stock just hit, or on a break of channel support.