SBUX
Starbucks Moving Towards The Previous HighLast post: August 7th 2019. See chart .
Review: Price gapped up, and started to pull back.
Update: Price filled around 50% of the gap and has started to rise again.
Conclusion: If the bulls can continue to have control then we should see a break of the previous high soon.
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Sublime Trading
Starbucks Trying To Fill The GapLast post: July 28th 2019. See chart .
Review: Price gapped up, showing strength to the upside.
Update: Price has pulled back and has filled half of the gap.
Conclusion: If this pullback has already found support then we want to see if price will break and close above the previous high and $100 round number.
Any comments or questions, do not hesitate to leave them below. Give us the thumbs up if you share our sentiments!
Sublime Trading
Starbucks Gaps UpLast post: July 13th 2019. See chart.
Review: Price was trending up nicely.
Update: Due to earnings, price has gapped up showing further strength.
Conclusion: We want to see if the gap will be filled or whether price continues to create new all-time highs
Any comments or questions, do not hesitate to leave them below. Give us the thumbs up if you share our sentiments!
Sublime Trading
Coffee: Boom. Roasted!This is an excerpt from the Parallax Weekly premium report originally published July 15, 2019.
"The net-positioning in coffee has surged, and the percentile metric is not suggesting it’s extremely overdone even though the one-year z-score is well above 2.
The problem now is that coffee prices have declined from $116 to $106 with net-longs still in charge. There is uncertainty surrounding frost that effected the Brazilian crop. Contingent on crop damage estimates, record production expectations into 2020 and price/net-positioning divergences, the bearish case for coffee @ 96 is created."
Starbucks Is Moving Full Steam Ahead!Last post: July 3rd 2019. See chart .
Review: Price was in a nice up moving trend.
Update: Price has continued to head higher since.
Conclusion: This stock should present a nice trading opportunity on the next breakout.
Any comments or questions, do not hesitate to leave them below. Give us the thumbs up if you share our sentiments!
Sublime Trading
Starbucks Shooting Higher!Last post: June 20th 2019. See chart .
Review: Price was trending up nicely showing a nice bullish candle last month.
Update: Price has since broken above a previous high.
Conclusion: As we have broken above a previous high, price is looking strong and creating new all-time highs.
Any comments or questions, do not hesitate to leave them below. Give us the thumbs up if you share our sentiments!
Sublime Trading
Starbucks - How long will it stay overbought? Using Fibonacci retracement: SBUX next resistance is $85.75 .
If we brake above this line with high volume, it confirms the extended bull trend; meaning we could spend some more time in overbought conditions.
RSI and OBV confirm strong uptrend since July 2018. Check weekly time-frame for a clear view.
SBUX August bear vertical: sell 72.5 and buy the 85 callThis trade is 43 deltas negative and can be done for a credit of 9.01. Best case profit of 901 is achieved below the stake of the sold call of 72.5 and the worst case loss is a loss of 349 per contract above the strike of the bought call, 85. There is technical support at 75 -- this is why the written call strike is below 75.
SBUX has a whopping high PE of 30; during the trade war debacle this is outrageous. Lots of growth in SBUX has come from store growth in China. In Q1 it opened 3,700 stores, and can now be found in 10 new cities — totaling 158 Chinese cities. As more money is being poured into Chinese expansion, however, competition is growing. Luckin’ is expanding throughout China; coffees at Luckin’ cost 30 percent less than those from the American competition.
Also, if there is a macroeconomic downturn, people will cut their expenses on luxury goods, like $8 cups of coffee. This is a fundamental issue SBUX will have to face. August expiry follows SBUX's earnings report which will begin to indicate the suffering from the consequences of the trade war.