Relevant level on Starbucks
Today, we will share the current situation we observe on SBUX. Let's start:
After making a new ATH from December 2020, we observed a continuation of that bullish movement until July 2021. From there, the price has been correcting. Currently, it's on a 17.82% decline (175 days)
The shape of the correction can be categorized into a flag pattern here; you can see a template on what I mean by this.
Based on this, you can see that when we cloned the main descending trendline on the lower zone of the structure, we can create a level to pay attention to. That level converges with the previous resistance zone on the top of Jul 2019 then mutate to work as a support level.
Alright, the conclusion here is: the zone between 98.00 and 100.00 may be a relevant bouncing level. This may be useful for short-term traders, scalpers, etc... As my main style is swing trading, this is not a situation where I can start developing setups; however, it's a place worth paying attention to from a technical perspective.
IN case the price breaks that level without problem, we should start looking for other zones below that may become supports (for example, 94.00)
Thanks for reading!
After making a new ATH from December 2020, we observed a continuation of that bullish movement until July 2021. From there, the price has been correcting. Currently, it's on a 17.82% decline (175 days)
The shape of the correction can be categorized into a flag pattern here; you can see a template on what I mean by this.
Based on this, you can see that when we cloned the main descending trendline on the lower zone of the structure, we can create a level to pay attention to. That level converges with the previous resistance zone on the top of Jul 2019 then mutate to work as a support level.
Alright, the conclusion here is: the zone between 98.00 and 100.00 may be a relevant bouncing level. This may be useful for short-term traders, scalpers, etc... As my main style is swing trading, this is not a situation where I can start developing setups; however, it's a place worth paying attention to from a technical perspective.
IN case the price breaks that level without problem, we should start looking for other zones below that may become supports (for example, 94.00)
Thanks for reading!
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