Starbucks: Next Major Support
InTheMoneyStocks.com | Jul 18, 2017 12:51PM ET
Chart patterns tell traders and investors a lot about a stock. Depending on the formation it could be signaling the direction of the money flow into or out of a particular equity.
Recently, coffee company Starbucks (NASDAQ:SBUX) has come under some decent selling pressure. Traders should note that the stock peaked out on June 5 at $64.87 a share. Since that high pivot, the stock has declined to $58.17. The current pattern is still signaling weakness as it trades below its 50-day moving average. Traders should now watch the $55 area as the next major support level. This is a chart level where the stock was supported in March 2017. The area will usually be supported by the institutional money once retested. Starbucks will report earnings on July 27 after the New York close.
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