Starbucks Corporation (SBUX) – coffee giant low on energy

ISIN: US8552441094

This US company is one of the largest coffee producers in the world. Their biggest claim to fame are surely the coffee houses that offer a huge selection of various coffee and tea varieties. Along with the main business, further food items are also available in the branches. In addition, there are joint venture connections with Pepsi Corp. and other companies.

In the following paragraphs, the company’s stock will be discussed from a technical point of view.

Review:

We are currently in a long sideways phase that has been exited only briefly in a little over a year. Within the price range of approx. $53.00 – $63.00, the value is oscillating in sometimes larger, sometimes smaller movements. Since the beginning of December, a clearer downward trend has now formed. The value of the stock is showing rising volume in the downward movements, and an unattractive chart development as well as falling volume in the corrections. The significance of the downward trend is also strengthened in comparison with the large indexes (SP500/Dow30/NASDAQ100). Since the election of Mr. Trump, these have been able to record new highs, while the Starbucks stock is having to fight back against a rally.

 

Daily Chart

 

Short-term outlook:

Since there is still plenty of elbow room down to the lower edge of the sideways range, a trade in the direction of the downward trend seems to be the most lucrative. If a scenario such as the one in image 2 occurs, the subordinate trend could be used for an entry. The first target would be in the region around $54.00. A further target is also the area around $53.00. This is where the lower edge of the sideways range is located, which is why here at the latest, it would be advisable to take any profit.

If the trend does not continue and if the last highs at $59.00 are sustainably broken, the short scenario would have to be put aside. In this case, a renewed observation of the stock would be advisable.

 

Hourly Chart

 

Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the overall market.

Disclosure of possible conflicts of interest:
At the time of publishing this analysis, the author is not invested in the securities or underlyings discussed.

Disclaimer:

Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.

Starbucks Corporation (SBUX) – coffee giant low on energy
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