Starbucks Could Be Struggling
Starbucks 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?
There’s also potential confluence with the 50-day simple moving average (SMA).
Speaking of the 50-day SMA, it had a “death cross” 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.
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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: https://www.tradestation.com/important-information.
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?
There’s also potential confluence with the 50-day simple moving average (SMA).
Speaking of the 50-day SMA, it had a “death cross” 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: https://www.tradestation.com/important-information.
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