bossmodetrader

Time to cool off? SBUX

Short
NASDAQ:SBUX   STARBUCKS CORP
Love SBUX but time for a cool off. Gap from 2018 has not been filled all the way, rally has been great but all parties end and this might be one of them at least short term.

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Thanks for this Idea.Yes, could be. it is under my watch list
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What's your trigger? Also does the 2018 gap still hold any significance? Like you eluded to, it was partially breached in December. Seems like we're far off from that now.
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bossmodetrader protraderbro
@protraderbro, check out my Tilray post from a month or so ago (scroll through my recent post down to Tilray). I didn’t think gap was a big deal from 2018 but it filled it and bounced right after. There is some significance to it. Gaps tend to get filled. Usually much sooner though. I am still 50/50 on SBUX but RSI is cooling and price is rising which is showing divergence. Volume is dropping. MACD is looking ready to turn red. It’s been a straight 45 angle line up since July 2018. Price has to give at some point and it could be a turning point. Look at past 3 year chart of price of coffee as commodity. It’s been going down and appears to have bottomed in april 2019. However, Cup of coffee at SBUX hasnt been going down making their margins higher during this time. Seems to me that cost of coffee started turning around in May 2019 so it will start reflecting on earnings if cost continues to go up. If this plays out as I am seeing it, it’s a shorting opportunity. although I shorted it at these levels, I don’t have a very convincing argument to persuade others. Price might as well go up to $100.
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