SBUX
SBUX has been a volatile stock since 2018, a characteristic that tends to be unpopular among investors. Between April '21 and January '22, the price entered a distribution stage, forming a Head and Shoulders pattern. The breakdown of this pattern, along with a Death Cross signal, marked SBUX's entry into a downtrend.
The downtrend persisted until May '22 when the price found support at around $70. Subsequently, the price experienced a full pullback to the neckline support area of the previous Head and Shoulders pattern.
From December '22 through August '23, the price has been moving sideways, forming what appears to be another Head and Shoulders pattern. There has been a break of the neckline and a Death Cross signal, mirroring the exact price movement observed previously.
Entering trade short
Entry: 91.49
Stop Loss: 100.66, -10.02%
Target #1: 71.00, +22.40%, 2.23 RR ratio
Target #2: 51.36, +43.86%, 4.38 RR ratio
SBUX has been a volatile stock since 2018, a characteristic that tends to be unpopular among investors. Between April '21 and January '22, the price entered a distribution stage, forming a Head and Shoulders pattern. The breakdown of this pattern, along with a Death Cross signal, marked SBUX's entry into a downtrend.
The downtrend persisted until May '22 when the price found support at around $70. Subsequently, the price experienced a full pullback to the neckline support area of the previous Head and Shoulders pattern.
From December '22 through August '23, the price has been moving sideways, forming what appears to be another Head and Shoulders pattern. There has been a break of the neckline and a Death Cross signal, mirroring the exact price movement observed previously.
Entering trade short
Entry: 91.49
Stop Loss: 100.66, -10.02%
Target #1: 71.00, +22.40%, 2.23 RR ratio
Target #2: 51.36, +43.86%, 4.38 RR ratio
Trade closed: target reached:
73.46, +19.70%