SBUX Analysis is based on simplified Smart Money Trading Concepts.
Starbucks analysis was performed on both the Weekly Time Frame and then dialed down to the Daily.
The Weekly TF has had a change of swing structure from bearish to bullish (noted by the line with "W-x"). Then we had a pull back into the current discount zone and on the daily time frame changed from Bearish order flow to Bullish order flow.
Demand is stepping into the picture and we should see Starbucks price hit $107.66 hit within the next 40-60 days.
Trade Idea Point of Invalidation: Any break AND below above $89.09
------------------------------------------------------------------------------------------------------
Reward to Risk ratios could vary between 3:1 up to greater than 15:1 depending on the instrument you are trading and the level that you enter in at.
The round trip time from entry to exit is between 40 days - 3 months.
If you are Long the Underlying stock :
4 positions or one large entry between the 62%% pullback($96.22) and the 79% pullback($93.08) would be ideal.
Exits:
1st = $107.66
2nd = $112.64
3rd = $119.10
4th = $126.11
**Split your positions between the 2 suggested exits**
------------------------------------------------------------------------------------------------------
If you are trading stock options:
NO less than a 3 month expiration! This is to be able to capture the majority of the upward move.
Suggestion:
17th May $105 Call
or
17th May $100 Call
Exits:
Underlying stock price
1st = $107.66
2nd = $112.64
3rd = $119.10
4th = $126.11
If you need an options calculator, I suggest using: optionsprofitcalculator.com/calculator/short-put.html
------------------------------------------------------------------------------------------------------
If you are interested in a FREE course on how I analyze the markets, let me know in the comments.
THERE IS NO CHARGE FOR AWESOMENESS
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.