SBUX - Starbucks. Possible Short Setup.Possible short setup on SBUX, looking entry between 786-886 (highlighted in orange) or 1 line.
Don't forget to check the weekly Maxx Momentum to see if we have bearish divergence coupled with loss of momentum.
If SBUX breaks the white trend I have on the chart I believe that the targets levels I have are more likely to get tested.
Maxx <3
Starbucks
SBUX could break outGrowth in China
SBUX same store sale are expected to increase over the next few years as China's middle class doubles, but are currently flat to slightly negative.
In spite of same-store sales in China falling, SBUX revenue is up 20% in China due to the opening of new stores at a rate of one shop every 15 hours in China.
China has recently partnered with Alibaba to gain marketshare in the online delivery of coffee, but there remains some competition with the first Chinese coffee unicorn partnering with Tencent for delivery services and customer analytics.
Overall Growth
On average, same-store sales are only increasing at a pitiful 3%, but is expected to remain positive for the foreseeable future.
Current Valuation
Relative to the market, SBUX is undervalued. A PE of 24 or so would be more ideal, which would is 33% higher than it's current PE of 18. Assuming current expectations and earnings growth remains above 10%, that would add another 10% on a PE of 24 next year, putting my PT at about $88, and near around $100 by the Jan 2020 options expiration.
Given 9/33 analysts have a rating of HOLD, 14/33 analysts have a rating of BUY, and 10/33 analysts have a rating of STRONG BUY, with 0/33 analysts have a rating of SELL, I think SBUX will grow into its industries average PE or a bit higher at around 24.
SBUX is on the verge of breaking above it's bear trend into a bullish one.
2020 Jan 17, Strike $75 calls could have an upside of 2,000% ($1 to $20+) if the break above it's bear trend occurs in the next month or so and it's quarter to quarter upward trend is sustained into the long-term.
$SBUX Short Term Trading IdeaStarbucks has been trading in an ascending channel since mid June.
Blue line is a long term resistance, there is an opportunity for some small profits in a short period of time.
Also, Fundamentally there is the up coming pumpkin spice / holiday season which could give a boost to the stock.
Starbucks two-way tradeSBUX has previously shown many trading patterns such as head and shoulders and flags. Currently, the stock is in an upward flag, but also on the middle of two Fibonacci levels. The blue line represents short-term resistance if the stock breaks that I believe it will stay in this Fibonacci level with enough time to hold until the next resistance line. This upward pressure is also backed by the RSI breaking out of a flap pattern and going bullish. However, if the stock breaks the flap pattern downwards then it may be stronger as the Coppock curve has also reached its resistance, so hence I put a short order in until the next support line. Also, the 50 SMA could potentially act as upper resistance, hence why I have cut my take-profit lower.
STARBUCKS - CORRECTION AHEAD?
For this one it is very important to take note of that sloped yellow support line that has already held for longer than I initially thought! Only after breaking this line we can confirm a bigger correction.
Starbucks has made an amazing run all the way to above the 2.618 fib extension of wave 1!
It is obvious that this kind of growth is most likely not sustainable and we are in a quite overreached market still. Therefore I think we need to correct to the 0.382 fib level ($41.5) AT LEAST to remain in a healthy uptrend, much rather would I see even a 0.5 retracement ($34)!
Sidenote: There are other ways to count this, which is why I was very clear about that yellow support! Stay safe!
I hope this was helpful! Take care!
Starbucks, good trading opportunity.After news release that Starbucks closes 150 coffeshops, we had 2 big selling days. Breaking through one confirmed trend line and now testing another big one from the beginning of the trend.
This could be a good buying opportunity to trade a bounce with a good risk-reward ratio, stop below the 50 or 49, 1st target at the previous trend line .
Alternatively a break below the 47.80 level would provide good confirmation for a short position to the next big support at 42.10, which is also the 38.2% retracement.
Happy Trading!
STARBUCKS BUY CHINA MARKET EXPANSION + IDENTIFICATION OF PROBThis is going to sound weird but I recommend buying. Starbucks closing a lot of its outlets have caused a huge drop in stocks.
In all honesty, though, Starbucks has a very high chance of coming back from this, especially as they've started introducing new options and are now focused on doing better. They've identified multiple problems and are working on solving them. This really has the mark of a dedicated company and hence I'm quite confident in their future
Heck, they are currently opening a new outlet in China every 14 hours!! They are also opening new outlets all over the world including Italy. Targetting the international market will undoubtedly be good for the stock.
Therefore it might be smart to invest at this point due to the drop and then make a profit as the prices increase over time.
Please do this at your own risk though as the price could very well drop and some people may have no confidence in Starbucks. In that case, do go ahead and short!!
Again, as a complete amateur, likes/ feedback would be appreciated.
SHORT ON STARBUCKS!WE GOT A SELL OPPORTUNITY?
I believe that we got some real sell opportunity here guys. Prices could go down to lows of 55.00, be very careful as prices are approaching the ''V/Chinese Hat'' as prices could reverse quite sharply or could penetrate through with very strong volume!
TP:55.00
SBUX- due for a CORRECTIONDouble top on resistance and head and shoulders forming. Cycle from 2009 is due for a correction. Look at the previous cycle for a clue. The trend of parabolic advances may continue after after a correction to 42 or even 50 if lucky, but this year doesn't look too hot for the coffee giant.
$SBUX (Starbucks) Long Possibility The good thing about this stock is that it usually recovers in a fairly quick amount of time. This stock doesn't always recover right away. I personally think Starbucks is coming to an area of previous support, so I believe price will follow history and recover back to the pre-earnings prices. Remember if you take my ideas to live trading, please remember that risk is important.
SBUX Long positionStarbucks long position
1: At Support line
2: Rsi is oversold
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STARBUCKS TEXTBOOK FLAG FORMING BIG BULL MOVE COMINGMy plan is to enter around 53.00 with a relative tight stop below the 51.00 low.
So the risk is really manageable, but the potential on this stock is very tasty, there is a potential for a 20% rise.
Before entering i will be looking at smaller timeframes to ensure that bulls are coming in, and stabilzing the price.
Fundamentally i have read several positive reports and bank analysis of starbucks with several banks expecting the stock to outperform toward the 64.00 level. So i think its worth to have it in the portfolio.
Thanks for reading, please make your own analysis, this is just my view and it might as well fall and take out the stop. Please use proper risk management.
Blessings to you all.