Investors have been hooked on Starbucks this year. Shares of the coffee giant are up more than 20 percent, and one technical-minded trader thinks the stock has even more room to run.
"Starbucks is a strong stock in a strong industry group, which is restaurants, and strong sector, consumer discretionary," technical analyst Todd Gordon said Monday on CNBC's "Trading Nation." The consumer discretionary ETF XLY is up 6 percent this year, while the broader S&P 500 index is up roughly half that in the same period.
According to Gordon, Starbucks could be setting up for a major breakout. "Starbucks is in a clearly defined uptrend," said Gordon, founder of TradingAnalysis.com. He noted that Starbucks has moved to the lower end of its trend channel. But Gordon sees this as a positive. By his chart work, now that the pullback is "complete," investors can expect shares of Starbucks to go higher and test the upper end of this channel.