Starbucks Could Be StrugglingStarbucks has drifted lower since May, and now traders may see further downside risk.
The first patterns on today's chart are the candlesticks on October 19 and October 25. SBUX tried to get above $95 but failed to close there in two separate weeks. Such price action could reflect selling pressure.
Next, the coffee chain stalled at a low from July 7. Has old support become new resistance?
Thereโs also potential confluence with the 50-day simple moving average (SMA).
Speaking of the 50-day SMA, it had a โdeath crossโ under the 200-day SMA in July. That could indicate a bearish trend over the longer term.
This chart includes our 2 MA Ratio custom script in the middle study. It shows that the 8-day exponential moving average (EMA) crossed below the 21-day EMA on Friday. That could suggest the short-term trend is turning bearish as well.
The most recent sessions also featured a potential bearish flag breakdown.
Finally, stochastics are dipping from an overbought condition.
Traders could focus on these signals with earnings due on Thursday, November 2.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com .
SBUX trade ideas
SBUX - D1\W1SBUX
W1 - The 4th wave is forming, which can lead to a continuation of the downward movement, but it is also clear that the price, after fixing the level, has formed a reversal pattern on D1, which can lead to a strong correction.
D1 - Formation of a three-wave structure, you can try to consider buying from the level of 94.00. Locally to levels 101.76. If the price can gain a foothold at the level of 94.95, we can expect the movement to continue.
What can you expect?
You can consider entering from the level of 94.00 (you can consider breaking through the level or fixing the price behind this level) with further movement to the target 101.76. Cancel the idea so as not to take increased risk from the level of 90.74 . There may also be a false breakout of this level and continuation of the upward movement - in this case, it will be necessary to wait for a clear formation to continue the downward movement.
Targets 94.95 - 96.99 - 98.83 - 101.76
Expansion Efforts Aid Starbucks (SBUX)Starbucks Corporation SBUX is capitalizing on its expansion initiatives and strong North America comparable sales. Nevertheless, disappointing Channel Development sales and rising inflationary costs are challenges. Over the past year, the stock has risen by 6.1% compared with the industry's 8% growth.
The Zacks Rank #3 (Hold) companyโs earnings and sales in fiscal 2023 are likely to witness jumps of 16.9% and 11.1% year over year, respectively. SBUX also has an impressive long-term earnings growth rate of 16.5%.
STARBUCKS It isn't time for coffee yet..The Starbucks Corporation (SBUX) has been declining aggressively since early May 2023 as fundamentals failed to keep the mid-2022 rally going. Now there are heavy technicals for the stock to consider as last month (chart on the right) it closed the 1M candle below the 1M MA50 (blue trend-line) for the first time in 11 months. On the weekly (chart on the left), it is already below both the 1W MA200 (orange trend-line) and 1W MA50 (blue trend-line).
The long term pattern since the March 2020 COVID crash is a Triangle and the current Support is its Higher Lows trend-line. The 1W RSI also has a Higher Lows trend-line to consider, so we will wait for a test and clear rebound on the former. On the 1M time-frame, it's the 1M MA100 (green trend-line) that was touched during the previous two Higher Lows and provided a strong rebound and bullish reversal as it rose and left a big candle wick behind, emphatically indicating the presence of long-term investors. Similarly the 1M RSI has a Support Zone to consider. We think it is possible for both the 1W and 1M RSI to touch its respective Support levels sideways as the price's drop decelerates near the Higher Lows.
In conclusion our Buy Zone is within the Higher Lows trend-line and the 1M MA100. The target will be the Lower Highs trend-line at $105.00.
-------------------------------------------------------------------------------
** Please LIKE ๐, FOLLOW โ
, SHARE ๐ and COMMENT โ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. **
-------------------------------------------------------------------------------
๐ธ๐ธ๐ธ๐ธ๐ธ๐ธ
๐ ๐ ๐ ๐ ๐ ๐
SBUX PINBARHere is one of my most explosive setups, the Pinbar. A bullish Pinbar on a HTF chart tells us that sellers tried pushing price lower but failed miserably due to a strong surge in buyers taking control and this is also confirmed by the CVol + The inverse head and shoulders on the LTF (5m). If you look at the 5m charts volume the last bar was much more noticeably larger than every proceeding volume bar which can be an indication to investors outlook on the next trading day.
SBUX looks ready to dumpSBUX doesn't look good for bulls.
We see a head and shoulders pattern, but frankly speaking, SBUX looks so bearish now that entering short now may be not a bad idea.
However , in order to take a short position based on the confirmation, it's better to wait for a neckline (support) breakdown.
2 targets are shown on the chart.
Stop loss: 106$
H&S forming on $SBUXLike many other stocks a H&S in forming here as well. If completed (still need to break the neckline) the price target is compatible with the May '22 lows. This could be a good opportunity for dollar-cost-averaging at the various horizontal sub-levels if you are looking for an entry
SBUX Entry, Volume, Target, StopEntry: with price below 93.91
Volume: with volume greater than 7.825M
Target: 88.98 area (this is an area, no guarantee it reaches this price, but you should be selling on the way up)
Stop: Depending on your risk tolerance; Based on an entry of 93.70, 96.06 gets you 2/1 Reward to Risk Ratio.
This SHORT swing trade idea is not trade advice and is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed while evaluating this trade idea. Do not take this trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
Assessment of Starbucks' (SBUX:NASDAQ) Stock PerformanceAssessment of Starbucks' Stock Performance Since Q3 Earnings Release
Since its Q3 earnings release on August 1, Starbucks' stock has exhibited a sideways trading pattern, experiencing a modest decrease of 2.7%. This movement prompts a closer examination of the company's value proposition in light of the current market conditions.
Undervaluation of Starbucks' Strong Value Proposition Amid Uncertainty
Amid the prevailing atmosphere of uncertainty in the market, it appears that Starbucks' robust value proposition might be undervalued. The company's established brand, widespread global presence, and resilience even in challenging times could potentially position it as a more attractive investment opportunity than its current market perception suggests.
Consideration for Conservative Investors with a 1-Year Horizon
For investors with a conservative stance and a horizon of one year, Starbucks (SBUX) emerges as a promising investment option when compared to a 5% Treasury bill. While the stock has experienced a minor downturn, its potential for recovery and growth over a 12-month period offers a potential upside that could outweigh the conservative returns of a Treasury bill.
Starbucks as a Secure Cash Position for Growth-Oriented Investors
Growth-oriented investors seeking a secure haven for their funds have the opportunity to consider Starbucks as an excellent cash position. With the potential for a notable 10-20% upside, Starbucks could serve as a strategic location to allocate funds, allowing investors to benefit from both the safety of a stable investment and the prospect of substantial growth.
Win-Win Potential for Various Investor Profiles
In summation, Starbucks' stock performance and value proposition present a win-win scenario for investors across various profiles. Conservative investors can potentially experience superior returns compared to traditional low-risk options, while growth-oriented investors can find a safe harbour that aligns with their quest for higher returns. This positioning within the market indicates the potential for Starbucks to deliver favourable outcomes for a diverse range of investors.
This content is provided for general information purposes only and is not to be taken as investment advice nor as a recommendation for any security, investment strategy or investment account.
๐๐ #ChartPattern Alert! ๐๐ ๐ Falling Wedge ๐๐๐ #ChartPattern Alert! ๐๐
๐ Falling Wedge ๐
๐ What is a Falling Wedge? The Falling Wedge is a bullish chart pattern characterized by two converging trendlines, with the lower trendline sloping upward more than the upper trendline. It typically signals a potential bullish reversal, with the price likely to break upward after the wedge pattern.
๐ How to Identify:
Draw a trendline connecting at least two higher highs (upper trendline).
Draw another trendline connecting at least two higher lows (lower trendline).
๐ What it Signals: The Falling Wedge suggests a potential bullish reversal, with buyers gaining strength as the price reaches higher lows within the wedge. It often forms during downtrends and can precede a significant price move to the upside.
๐ Trade Strategy:
Consider buying when the price breaks above the upper trendline of the Falling Wedge.
Set profit targets based on the pattern's height added to the breakout point.
Implement a stop-loss to manage risk in case of a false breakout.
Remember to validate your analysis with other technical indicators and conduct thorough research before making any trading decisions. Happy charting and trading! ๐๐น
The market just doesn't like itAnother HS is building up here. The break down will be violent, I think it just need a couple of weeks to get the target. I don't think that support at 96 will hold for much longer, too much bearish pressure. It could make a last pull back, is it does I'll add to my short position.
Starbucks continues to find buyers.Starbucks - 30d expiry - We look to Buy at 97.62 (stop at 94.94)
The primary trend remains bullish. 97 continues to hold back the bears.
Bespoke support is located at 97.50.
96.17 has been pivotal.
Offers ample risk/reward to buy at the market.
The daily chart technicals suggests further downside before the uptrend returns.
Our profit targets will be 104.12 and 106.12
Resistance: 101.50 / 102.50 / 104.50
Support: 99.30 / 97.50 / 95.55
Please be advised that the information presented on TradingView is provided to Vantage (โVantage Global Limitedโ, โweโ) by a third-party provider (โEverest Fortune Groupโ). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group
SBUX Starbucks Corporation Options Ahead of EarningsIf you haven`t sold the Exposure to China news:
or reentered the past earnings:
Then analyzing the options chain and the chart patterns of SBUX Starbucks Corporation prior to the earnings report this week,
I would consider purchasing the 100usd strike price in the money Calls with
an expiration date of 2023-9-15,
for a premium of approximately $4.50.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
I`m considering in the money calls and a longer expiration date because its options chain is just slightly bullish.
Looking forward to read your opinion about it.