SodaStream (SODA) Breaking Out With Good Volume

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02:48:29 pm on December 17, 2012

A high quality breakout is taking place in shares of SodaStream International (SODA) this morning with good volume.  I don’t see any news on the stock at this time, but there may be an upgrade that I’m missing.  SodaStream is a company I first wrote about over at Self Investors not long after the IPO.  I liked the stock quite a bit then despite some question marks.  The question marks remain today as long term investors remain skeptical.  Let them remain skeptical.  What I see developing today is a breakout from a cup with handle base with strong volume.  While this isn’t a breakout to new all time highs, but rather a base within a much larger base created with the huge plunge in the summer of the last year, I believe there is room to run.  A real nice trade setup here.

===> Get A Free Daily Analysis of SodaStream (SODA) To Help Guide Your Trade

SodaStream is a play on homemade soda.  The company makes a carbonation machine allowing to you create your own cola, energy drinks or sparkling water.  They tout the cost savings, the ability to sweeten it just the way you like (ie soda without the mounds of sugar that pepsi and coca cola use) and the environmental benefits.  The company continues to show rapid growth and with a breakout move like we have today, I believe the time is right for at least a swing trade of a few weeks to a few months.  The stock may be beginning a move ahead of it SuperBowl debut on February 4th.  I’d be looking to take a profit the following morning if the stock runs more than 20% from here.

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