Hi, let's look at the weekly charts for Starbucks Corp with the symbol of SBUX.
I like looking at Weekly charts because it reduces the noise and help us to concentrate on the overall trend the market in the intermediate and short term. Starbucks is following a 23 week cycle and I expect the next cycle low to be around 28th of April 2020. Cycle low can happen one week a couple of weeks prior or later as well and hence its important to look and i will be keeping an eye on it.
I have mentioned the key point of the previous cycles on the chart . Let's look what happened on 22nd July 2019. On the weekly candle at this date, we saw major market high being made and this was also indicated on the RSI levels . RSI went above the 90 levels and became significantly overbought. Around 23rd September 2019 is when we were expecting a higher high to be made as this time was around 75% of the cycle completion where one would expect a higher high in an uptrend cycle, which failed. We went on to make a cycle low as expected on 11 November 2019 which happened to confirm that we made a lower low than the previous important low and that we breached the previously established uptrend line.
Any long trades prior to this was a great time to exit and book all profits . We are now in a downtrend.
As established, we are in a declining phase on the weekly charts. Not only is the weekly momentum negative, the daily chart too shows that we are in a declining phase. Daily chart cycle analysis suggests cycle lows to be expected near Feb 2020 end or early March 2020.
Entry range : 87.35 to 90.35 (weekly chart has shown a downward window, will act as important resistance zone)
Take Profit 1 : 84.79 to 82.58
Take Profit 2 : 79.32 to 75.15
I like looking at Weekly charts because it reduces the noise and help us to concentrate on the overall trend the market in the intermediate and short term. Starbucks is following a 23 week cycle and I expect the next cycle low to be around 28th of April 2020. Cycle low can happen one week a couple of weeks prior or later as well and hence its important to look and i will be keeping an eye on it.
I have mentioned the key point of the previous cycles on the chart . Let's look what happened on 22nd July 2019. On the weekly candle at this date, we saw major market high being made and this was also indicated on the RSI levels . RSI went above the 90 levels and became significantly overbought. Around 23rd September 2019 is when we were expecting a higher high to be made as this time was around 75% of the cycle completion where one would expect a higher high in an uptrend cycle, which failed. We went on to make a cycle low as expected on 11 November 2019 which happened to confirm that we made a lower low than the previous important low and that we breached the previously established uptrend line.
Any long trades prior to this was a great time to exit and book all profits . We are now in a downtrend.
As established, we are in a declining phase on the weekly charts. Not only is the weekly momentum negative, the daily chart too shows that we are in a declining phase. Daily chart cycle analysis suggests cycle lows to be expected near Feb 2020 end or early March 2020.
Entry range : 87.35 to 90.35 (weekly chart has shown a downward window, will act as important resistance zone)
Take Profit 1 : 84.79 to 82.58
Take Profit 2 : 79.32 to 75.15