In mid-2017, Starbucks Corp. (Friday’s close US$57.40) started a down-trend as it traded below a falling trend-line (solid line). Up until mid-2018, the stock found support near US$52-US$53 (shaded area), but then it fell below this level and its 40-week Moving Average (40wMA) to signal the continuation of the down-trend (A).
Behaviour indicators including the falling 40-week Moving Average (40wMA) and the falling trend-line (solid line) confirm the negative status. The stock is currently in the midst of a minor recovery rally toward its average to provide a selling opportunity (B). Only a sustained rise above US$60-US$61 would reverse the current negative trend.
Point & Figure measurements provide targets of US$45 and US$40.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com