Monday, November 9, 2015

Keurig Green Mountain Inc (NASDAQ: GMCR)

Keurig Green Mountain, Inc. produces and sells specialty coffee, coffee makers, teas, and other beverages in the United States and Canada. It sources, produces, and sells coffee, hot cocoa, teas, and other beverages under various brands in K-Cup, Vue, Rivo, K-Carafe, and Bolt portion packs brands; and coffee in traditional packaging, including bags and fractional packs, as well as offers whole bean and ground coffee in bags, fractional packages, and cans. The company also offers other specialty beverages in portion packs, which include hot apple cider, hot and iced teas, iced coffees, iced fruit brews, hot cocoa, and other beverages for use with its Keurig hot brewing systems, as well as sells coffee-related equipment and accessories, gift assortments and hand-crafted items from coffee-source countries.
Take a look at the 1-year chart of Keurig (NASDAQ: GMCR) with the added notations:
1-year chart of Keurig (NASDAQ: GMCR)
GMCR has been in a solid downtrend for the past year. However, the stock has been trading sideways on top of a $50 support (green) during the most recent two months. Now that the stock appears to be testing that support level again, traders should be able to expect some sort of bounce. However, if the $50 support were to break, lower prices should follow.

The Tale of the Tape: GMCR has a key level of support at $50. A trader could enter a long position at $50 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

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