Chart of the Day: Dutch Bros Needs a Jolt of Caffeine
The coffee roaster/chain is set to report earnings this week but the chart is not looking bullish. Here's what to watch.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
We are looking for some strong numbers from Dutch Bros (BROS) later in the week when the company reports revenue/earnings/forward guidance from their recently completed quarter.
Dutch Bros' prior earnings reports have been taken rather positively but the stock just cannot seem to get moving to the upside. The last report in November looked to be a driver of performance with some buyers coming in (November and December) but the rally fizzled out.
Money flow is the one area of concern as it has recently gone well below the zero line after straddling that level for a bit. ADX (pane 4) is weak, which tells us there is no strength in the trend. Stochastics (momentum) is giving the same message. There's just little interest in buying, no energy at all.
Volume trends are moderately bearish. The candles are pink/purple, which tells us the GoNoGo composite of indicators is bearish. An earnings surprise and a move above $62 confirmed would go a long way to turning this chart around. In all likelihood sideways movement from $55-62 is what we are looking at going forward.
We like BROS in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
More Pro Portfolio:
- Adding to 2 Hard Hit Holdings... and Our Plans for 4 Others
- 23 Portfolio Signals Across 8 of Our Themes
- Weekly Roundup: 'Software-mageddon' Takes the Market on a Wild Ride
At the time of publication, TheStreet Pro Portfolio was long BROS.
