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Starbucks: Next Leg Down Has Begun

Published 09/21/2014, 02:37 AM
Updated 07/09/2023, 06:31 AM

SBUX

During December 2013, Starbucks Corporation (NASDAQ:SBUX) entered a long term correction after a year-long uptrend. Apparently, SBUX started its next down-leg within this correction a week ago, breaking down through the neckline of a small two-month long head-and-shoulders pattern.

The breakdown was confirmed by the PPO (momentum indicator) decline below -0.25, a level with proven significance during this correction. Price is testing the broken support right now and has a price objective at 71.5-72.5 according to my PnF charts. The PnF price target coincides with a head-and shoulders measured move target. Should price rise to 79 this scenario would be reconsidered.

Disclaimer: I express only my personal opinion on the market and do not provide any trading or financial advice (see Disclaimer on my site).

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