Green Mountain Coffee Roasters (GMCR) is the company that produces those little K cups and the Keurig machines that produce the one-cup-at-a-time wonder. As an alternative to Starbucks and other coffee houses, the K cups are a great change from the traditional pot of coffee.
However, the company has not been short of controversy. Often on the attack by short sellers, Green Mountain found a nice friend in Coke last year when they bought a huge stake in the company at a rather high share price. Those skeptical of the business model were immediately thwarted, and most recently Coke even upped their stake, buying more shares (filed in a disclosure last week).
The GMCR chart and technicals are rather complicated, so watch the video below, as it explains what I’m looking at. In short, we’ve seen some very solid option volume (flow) in the name that tells us there are some big players buying the stock. We’ll have to see how this one unfolds, but certainly bouncing off recent support and pushing to the upside is an encouraging start.
The Green Mountain Coffee chart shows a couple of resistance lines but some good momentum trends, and the price action has started to turn up. The MACD buy signal is significant and could help ride this stock higher, perhaps filling the gap around $153.
We bought some of the April $125 call strikes last week, and those are already off to a nice start.
Green Mountain Coffee Chart Analysis
Take a deeper dive into the chart action and learn how to read the technicals as I walk you through the Green Mountain Coffee stock (NASDAQ: GMCR) and my analysis.
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