Relevant level on StarbucksToday, 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!
