Something Brewing?
NASDAQ:SBUX Has had a tough week (dropping -17.7%), topped with a demand from the former CEO Howard Schultz to shift focus from the current data-driven business model to a customer-centric business.
With the above being said, I believe the coffee giant will recover amid rising competition from Dtchbros $NYSE: BROS and Dunkin Donuts $FINRA: DNKN_SHORT_VOLUME.
This is my strategy:
Using Bollinger Bands and Fibonacci Retracement, we see a large trade volume and volatility increase as the price drops below the SMA and lower band. The price is currently $73.11. We can expect it to reach a price target of $84.68 (test strategy here) before retracement or reversal, as the shares may be near overbought status.
This will give us a nice $11.50 profit per share.
Enter at price targets: $70.31 and $72.92
Hold for the price to cross $87.46 for uptrend confirmation.
