Starbucks Corporation (SBUX) – coffee giant low on energy?
We are currently in a long sideways phase that has been exited only briefly in a little over a year. Within the price range of approx. $53.00 – $63.00, the value is oscillating in sometimes larger, sometimes smaller movements. Since the beginning of December, a clearer downward trend has now formed. The value of the stock is showing rising volume in the downward movements, and an unattractive chart development as well as falling volume in the corrections. The significance of the downward trend is also strengthened in comparison with the large indexes (SP500/Dow30/NASDAQ100). Since the election of Mr. Trump, these have been able to record new highs, while the Starbucks stock is having to fight back against a rally.
Since there is still plenty of elbow room down to the lower edge of the sideways range, a trade in the direction of the downward trend seems to be the most lucrative. If a scenario such as the one in image 2 occurs, the subordinate trend could be used for an entry. The first target would be in the region around $54.00. A further target is also the area around $53.00. This is where the lower edge of the sideways range is located, which is why here at the latest, it would be advisable to take any profit.
If the trend does not continue and if the last highs at $59.00 are sustainably broken, the short scenario would have to be put aside. In this case, a renewed observation of the stock would be advisable.
Since there is still plenty of elbow room down to the lower edge of the sideways range, a trade in the direction of the downward trend seems to be the most lucrative. If a scenario such as the one in image 2 occurs, the subordinate trend could be used for an entry. The first target would be in the region around $54.00. A further target is also the area around $53.00. This is where the lower edge of the sideways range is located, which is why here at the latest, it would be advisable to take any profit.
If the trend does not continue and if the last highs at $59.00 are sustainably broken, the short scenario would have to be put aside. In this case, a renewed observation of the stock would be advisable.