$SBUX Starbucks Corporation Daily Chart Analysis
The chart depicts Starbucks Corporation (SBUX) on the daily timeframe, showing a recent breakdown from a rising wedge pattern. The price has sharply fallen below key support levels and moving averages, suggesting a shift in momentum to the downside. Here's a detailed walkthrough of the analysis:
Key Observations:
1. Trend Analysis:
Rising Wedge Breakdown:
The chart highlights a breakdown from a rising wedge, a bearish reversal pattern, indicating potential for further downside.
The price has decisively broken below the lower boundary of the wedge, confirming the bearish momentum.
Bearish Momentum:
SBUX is now trading below the 200-day moving average (red line) and other short-term EMAs (8 EMA, 21 EMA), which aligns with a bearish trend.
2. Support and Resistance Levels:
Resistance Levels:
92.28-93.01: A key resistance zone aligned with prior dark pool activity and broken support, likely to act as a ceiling for any short-term rebounds.
95.79: Previous support turned resistance, near the 200-day moving average.
98.60: A strong resistance area near recent highs.
Support Levels:
87.00: Immediate support zone, tested recently with increased volume.
80.24-79.15: Major support area, aligning with historical levels and dark pool prints.
Below 79.15, the next significant level is 75.00, a psychological support area.
3. Volume Analysis:
A volume spike accompanies the recent sell-off, indicating strong selling pressure. However, this could also signal capitulation if buyers step in near support levels.
4. Moving Averages:
The price is trading significantly below the 200-day moving average, confirming bearish sentiment.
Short-term moving averages (8 EMA, 21 EMA) are sloping downward, suggesting that bearish momentum may persist.
5. Dark Pool Activity:
Recent dark pool levels around 93.01 and 92.28 may act as resistance if the price attempts a rebound.
Additional dark pool levels at 80.24 and 79.15 suggest institutional interest, making this area a critical support zone.
Trade Setup:
Scenario 1: Bearish Continuation
Trigger: If the price fails to reclaim the 92.28 resistance level and continues lower, the bearish trend is likely to persist.
Profit Targets:
87.00: Immediate short-term target.
80.24-79.15: Strong support zone with significant institutional interest.
75.00: Longer-term bearish target.
Stop-Loss: Above 93.50, as a break above this level would signal potential bullish recovery.
Scenario 2: Bullish Reversal
Trigger: A breakout above 92.28, accompanied by strong volume, would signal a potential reversal or relief rally.
Profit Targets:
95.79: Resistance near the 200-day moving average.
98.60: Strong resistance zone near recent highs.
Stop-Loss: Below 87.00, as a failure to hold this level would invalidate the bullish setup.
Scenario 3: Range-Bound Consolidation
If the price consolidates between 87.00 and 92.28, consider:
Long positions near 87.00, targeting 92.28.
Short positions near 92.28, targeting 87.00.
Volume and candlestick patterns will help confirm the direction of the breakout.
Final Thoughts:
Short-Term Outlook: Bearish momentum is strong, with the immediate downside target at 87.00. If this level breaks, watch for a move toward 80.24-79.15.
Long-Term Outlook: The dark pool levels near 80.24-79.15 suggest strong institutional support. If the price reaches this zone, it could provide a significant buying opportunity for long-term investors.
Key Observations:
1. Trend Analysis:
Rising Wedge Breakdown:
The chart highlights a breakdown from a rising wedge, a bearish reversal pattern, indicating potential for further downside.
The price has decisively broken below the lower boundary of the wedge, confirming the bearish momentum.
Bearish Momentum:
SBUX is now trading below the 200-day moving average (red line) and other short-term EMAs (8 EMA, 21 EMA), which aligns with a bearish trend.
2. Support and Resistance Levels:
Resistance Levels:
92.28-93.01: A key resistance zone aligned with prior dark pool activity and broken support, likely to act as a ceiling for any short-term rebounds.
95.79: Previous support turned resistance, near the 200-day moving average.
98.60: A strong resistance area near recent highs.
Support Levels:
87.00: Immediate support zone, tested recently with increased volume.
80.24-79.15: Major support area, aligning with historical levels and dark pool prints.
Below 79.15, the next significant level is 75.00, a psychological support area.
3. Volume Analysis:
A volume spike accompanies the recent sell-off, indicating strong selling pressure. However, this could also signal capitulation if buyers step in near support levels.
4. Moving Averages:
The price is trading significantly below the 200-day moving average, confirming bearish sentiment.
Short-term moving averages (8 EMA, 21 EMA) are sloping downward, suggesting that bearish momentum may persist.
5. Dark Pool Activity:
Recent dark pool levels around 93.01 and 92.28 may act as resistance if the price attempts a rebound.
Additional dark pool levels at 80.24 and 79.15 suggest institutional interest, making this area a critical support zone.
Trade Setup:
Scenario 1: Bearish Continuation
Trigger: If the price fails to reclaim the 92.28 resistance level and continues lower, the bearish trend is likely to persist.
Profit Targets:
87.00: Immediate short-term target.
80.24-79.15: Strong support zone with significant institutional interest.
75.00: Longer-term bearish target.
Stop-Loss: Above 93.50, as a break above this level would signal potential bullish recovery.
Scenario 2: Bullish Reversal
Trigger: A breakout above 92.28, accompanied by strong volume, would signal a potential reversal or relief rally.
Profit Targets:
95.79: Resistance near the 200-day moving average.
98.60: Strong resistance zone near recent highs.
Stop-Loss: Below 87.00, as a failure to hold this level would invalidate the bullish setup.
Scenario 3: Range-Bound Consolidation
If the price consolidates between 87.00 and 92.28, consider:
Long positions near 87.00, targeting 92.28.
Short positions near 92.28, targeting 87.00.
Volume and candlestick patterns will help confirm the direction of the breakout.
Final Thoughts:
Short-Term Outlook: Bearish momentum is strong, with the immediate downside target at 87.00. If this level breaks, watch for a move toward 80.24-79.15.
Long-Term Outlook: The dark pool levels near 80.24-79.15 suggest strong institutional support. If the price reaches this zone, it could provide a significant buying opportunity for long-term investors.
Disclaimer
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