Don't Ignore This Chart!

A Sale At Starbucks (SBUX)


Have you ever had a friend say they wanted to get into a stock because it was on sale? While shoppers love the word SALE, it does not always mean value. In this case it's Starbucks. Once again, the stock fails as Howard Schultz retires. With new store openings in China at a rate above one a day, it's crazy to believe the chart could be breaking down. But it is.

The RSI says it is entering a new bear market. The full stochastics don't look ready to turn higher any time soon. The PPO has just crossed below zero which suggests staying away until it can cross its signal line. That might only be for a trade.

For me the chart is a no-touch until it can find some support. The most likely place is under $40. 

Good trading,
Greg Schnell, CMT, MFTA

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus