Chart Glance: Broader Moving Averages prove that GMCR is still in a down trend and momentum indicators do not show an oversold stock as of yet.
Support 1:$47.50 Support 2: $45.00
GMCR: SBUX is up nearly 3% on news of a “single-cup,” home coffee machine. This doesn’t bold well for GMCR. GMCR were among the few “BIG PLAYERS” in the “single-cup” home, coffee machine space. SBUX presence really creates complications for GMCRs business model. Bank of America downgrades GMCR to “neutral.” Will GMCR continue to drop off a mountain? Is the GMCR upward momentum over for now? Traders love playing the SBUX/GMCR spread (Long SBUX, Short GMCR) and it seems to be working out well for them