In my previous article for Starbucks (SBUX) titled “3/29/2017 – Starbucks (SBUX) Stock Chart Review“, I talked about a confluence of bullish candlestick patterns that developed on its weekly candlestick chart. This confluence of candlestick patterns provided a definite support area that provided for limited downside risk.

Last week, SBUX share price printed $64.87 which represented a new 52 week high

Let’s review some of Starbucks (SBUX) current stock charts and see if we can’t determine what its future price action may hold….

Starbucks (SBUX) – Candlesticks Galore

This first chart is a 2 year weekly candlestick chart which shows the confluence of bullish reversal candlestick patterns that all provide support in the same general area for Starbuck’s share price. There are 2 Bullish Engulfing candlestick patterns as well as a Thrusting candlestick pattern.

By making a new 52 week high last week, Starbucks’s share price attempted to break through the resistance area from the Northern Doji candlestick pattern.

If you had purchased any shares for SBUX based on that previous article, you were most likely to over 15% gains since that time period. However since last week, some selling pressure developed and SBUX’s price action ended up developing into a Bearish Engulfing candlestick pattern last week.

So what can be expected going forward? The gray shaded box on the above chart represents what I think is the the area of[s2If !current_user_can(access_s2member_level1)]……

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I analyze the support and resistance areas for Starbuck’s share price to determine the best trading strategy.

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)] what I consider to be maximum downside risk.

If Starbucks (SBUX) does not print a $57.84 during its current pullback, its share price should most likely see the 161.8% Target Line and will not enter into the gray shaded box area. A scale-in purchase at slightly higher levels, maybe around the $58 – $59 area may be required to try for the trade up to the 161.8% Target Line.

If any attempted rebound fails, a second scale-in purchase would be made around the $54 price level. Remember though, the second scale-in purchase should only be made as long as selling volume and momentum is not increasing as it reaches the $54 level.

SBUX – Moving Averages

This next chart is a look at moving averages for Starbucks (SBUX), so I used my standard 1 year daily candlestick chart for that review. I’ve also added 2 main supporting trendlines for Starbucks attempted breakout from its consolidation period.

The trendline and breakout area seem to indicate a probable rebound from the $58 price area. However, if the $58 trendline support fails, the 200 Day moving average is sitting right below that as an additional support measure.

Confirm that selling momentum on the MACD Histogram is slowing down on a daily chart when making your scale-in purchase.

SBUX – P&F Chart

This last chart is a P&F chart for Starbucks. It is based on closing share prices for SBUX. You can also switch to projections based on intra-day highs and lows. In the case for Starbucks, each point of view (both intra-day and closing share prices) provide for the same upside target price – $84.

Starbucks (SBUX) – Summary

If you are not already long shares of Starbucks (SBUX), consider making a scale-in purchase of a few shares during its support areas discussed above. For those investors that already have some shares, the current pullback represents an opportunity to add some additional shares to your current position.

Purchasing shares during the current pullback appear to have a lucrative potential upside target area. We will confirm any upside price targets when SBUX confirms the reversal of its current downtrend.

Ask for an update at any time either below or in the Idea Chamber. Good luck trading!

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