Last week has been rough for SBUX having dropped $7 (12%) in a matter of 6 days. Now approaching the round level of $50 and losing its bear steam, we may see a short term bounce.
I've drawn a wedge down (bullish pattern) and would like to see a green day breaking this pattern before entering a short term long position with a stop below the $50 mark.
Now, I'm also fully prepared to go short have this break through that $50 mark as that would be very bearish and we may see the low $40's soon after.
Its a matter of waiting to see what happens.
Share your thoughts down below and happy trading :)
Hi I'm a bit of newbie for chart reading. I think the drop was mostly due to news that their growth has slowed down. I'd have thought that things would pick up again as it were before the drop but starting from the lower price? I am holding on that thought. Also the motney fool site experts have Starbucks on its top pick list which gives me some confidence. Mind you those were picked by them a week before the drop. I bought just after the 9% drop luckily not before...
VaughanAdams
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@brains4eva, Thats correct. Typically sharp moves like this are due to news, earnings etc. I would never trust those sites for to trade off of rather than just use them for ideas and do your own
research/analysis.
If you are new, i strongly recommend learning first rather than trying. Read lots about how to read charts. Test yourself by trading with fake money to see how you do.