Starbucks: Next Leg Down Has Begun
Igor Rakhmanov | Sep 21, 2014 02:37AM ET
During December 2013, Starbucks Corporation (NASDAQ:SBUX) entered a long term correction after a year-long uptrend. Apparently, SBUX started its next down-leg within this correction a week ago, breaking down through the neckline of a small two-month long head-and-shoulders pattern.
The breakdown was confirmed by the PPO (momentum indicator) decline below -0.25, a level with proven significance during this correction. Price is testing the broken support right now and has a price objective at 71.5-72.5 according to my PnF charts. The PnF price target coincides with a head-and shoulders measured move target. Should price rise to 79 this scenario would be reconsidered.
Disclaimer: I express only my personal opinion on the market and do not provide any trading or financial advice (see Disclaimer on my site).
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.