Good day all,
As I posted earlier there has been a nice Elliott pattern forming with the last leg developing.
Further to this, a triangle pattern has emerged and has broken out with a gap downwards on daily. Generally speaking, the target distance is the widest part of the triangle which lands just around the $40 mark. Further confirmation to this is the retracement to the Fib level of 50% from it's low of $50. We should expect the stock to trace down to at least the first level of the Fib extension which ALSO is around $40.
Fundamentally speaking, traffic is down now in UK, Canada, USA to drive-thru or full closure which compromise the majority of its revenue. They have guaranteed wages to staff into May whether they show up or not which in turn will MAINTAIN expenses. Starbucks realizes this and this is why it has decided to continue buybacks of 40M + additional 16M of its stock while other companies have suspended this. This is purely intended to juice its EPS come the next two quarters in hopes to 'manufacture' a better number. Expect retail investors to jump on only to be followed eventually with a downturn again.
Let me know what you think and if you see the opposite forming!
Cheers.
As I posted earlier there has been a nice Elliott pattern forming with the last leg developing.
Further to this, a triangle pattern has emerged and has broken out with a gap downwards on daily. Generally speaking, the target distance is the widest part of the triangle which lands just around the $40 mark. Further confirmation to this is the retracement to the Fib level of 50% from it's low of $50. We should expect the stock to trace down to at least the first level of the Fib extension which ALSO is around $40.
Fundamentally speaking, traffic is down now in UK, Canada, USA to drive-thru or full closure which compromise the majority of its revenue. They have guaranteed wages to staff into May whether they show up or not which in turn will MAINTAIN expenses. Starbucks realizes this and this is why it has decided to continue buybacks of 40M + additional 16M of its stock while other companies have suspended this. This is purely intended to juice its EPS come the next two quarters in hopes to 'manufacture' a better number. Expect retail investors to jump on only to be followed eventually with a downturn again.
Let me know what you think and if you see the opposite forming!
Cheers.
Comment:
Appears as though we had a false breakout down, and a possible breakout upwards. To update chart moving forward.