Stock of the day: Starbucks

By Tomasz Wisniewski|

Published: August 30 2022, 13:32 GMT+0

Stock of the day: Starbucks

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In today’s stock of the day, we are returning to Starbucks, which we’ve mentioned a few times already. I can see a potentially very nice bearish occasion on SBUX.

Starbucks in general is in a deep downtrend but since May there’s a bullish correction. Most recently, the correction was shaped like a flag (black lines) and few days ago, the price broke the lower line of this pattern, in theory giving us a proper sell signal.

This negative approach is additionally strengthened by the Head and Shoulders pattern (yellow), which emerged close to the 38,2% Fibonacci. The price is currently oscillating around the neckline (red), which still leaves some uncertainty here. In general, the sentiment is negative but for a proper sell signal the price needs to close the day below Monday’s opening. That would mean a bullish capitulation is really needed from a price action point of view.

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