This is a Starbucks (SBUX) stock chart update. In my previous full-length article for Starbucks (SBUX) titled “2/6/2017 – Starbucks (SBUX) Chart Analysis“, I stated

There has only been one temporary close below the support area from the Thrusting candlestick pattern. I would anticipate one more possible re-test of that support area before SBUX attempts to rebound towards its previous high of $64.

Let’s check in on the status of any attempted re-test of the support area from the Thrusting candlestick pattern that I anticipated in my previous article.

Starbucks (SBUX) – Confluence of Bullish Candlestick Patterns

This is a 3 year weekly candlestick chart for Starbucks (SBUX). I’ve identified the Thrusting candlestick pattern on the chart. The Thrusting candlestick pattern developed in February 2016.

I also identified two other bullish reversal candlestick patterns, both were Bullish Engulfing candlestick patterns. All 3 candlesticks developed on buying volume that was significantly above average, a bullish sign. This is a definite area of support. There would have to be some sort of news event or huge earnings miss to break below this support area. This indicates limited downside risk.

Reviewing Bullish Candlestick Patterns that Developed on a 3 Year Weekly Starbucks (SBUX) Stock Chart

Based on the confluence of bullish reversal candlestick patterns that have support areas within a few percentage points of each other, the $[s2If !current_user_can(access_s2member_level1)]……

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If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)]50 price level appears to be the downside risk area. This appears to be a very limited downside risk play.

Buying volume has been above average the last 2 weeks. There are 2 more trading days left in the current week, but it appears as if SBUX will

SBUX – Golden Cross Trade

One of the trade set-ups that I’ve talked about lately is purchasing shares on the first pullback to or below the 200 Day moving average after the development of a Golden Cross pattern.

This 1 year daily candlestick chart illustrates SBUX’s Golden Cross pattern and its subsequent activity. SBUX’s share price provided 2 opportunities to purchase shares below the 200 Day moving average after the development of its Golden Cross pattern. I’m not sure if there is going to be a third. But if there is, take advantage of it by purchasing shares.

Analyzing the Share Price Activity for Starbucks After the Development of Its Golden Cross Pattern

I anticipate SBUX’s share price to reach its overhead trendline resistance and then fade into earnings. The most logical move to me is to fade back to the 50 Day moving average. Breaking through the 100% Target Line is an indicator that the 161.8% Target Line is in play instead of fading back to the 61.8% Target Line.

There has been decent buying volume during the current uptrend. That buying volume indicates that any pullback to the 50 Day moving average is purchasable.

SBUX – Main Supporting Trendline

This 5 year monthly candlestick chart shows that over the last year, SBUX’s share price has spent time consolidating a previous uptrend. This longer-term view of its share price activity indicates that the selling momentum is continuing to decrease. This typically leads to an early rebound in the share price. Buying volume has also been increasing over the last year. Another bullish sign.

Analyzing a Pullback Towards Starbuck’s (SBUX) Main Supporting Trendline

The Elliott wave pattern that I see on the above Starbucks (SBUX) stock chart indicates a possible $70 price target for any successful rebound. That is over a 20% gain from the current share price. I anticipate this gain reaching its peak near the end of 2017 or in the first months of 2018. That is the minimum gain I anticipate. But I always like to set expectations reasonable but on the low-end.

Starbucks (SBUX) – Summary

With what appears to be limited downside risk (based on the confluence of bullish reversal candlestick patterns), Starbucks could be a stock that performs decent over the next year. If you like to purchase shares and then forget about them, Starbucks is definitely a candidate.

With potential gains of 20% or more over the next year, use any pullbacks to the $52 area to make a scale-in purchase of shares and go long. The main supporting trendline and confluence of candlestick patterns should provide ample support to pull this trade off. a 20% potential gain on a portion of the portfolio doesn’t sound too bad. There will most likely be a trading opportunity near the previous high of $64 as well. Stocks typically see a lot of selling pressure near previous highs, so selling some shares and repurchasing them at a 10% discount is another trade set-up to consider if going long at current prices.

That concludes this Starbucks (SBUX) stock chart update. Leave any questions below or in the Idea Chamber. And as with every article, ask for an update on any stock at any time!

Good luck trading!