Look What This Stock Chart Pattern Is Saying

Chart patterns tell traders and investors a lot about a stock. Depending on the formation of the chart it could be signaling the direction of the money flow into or out of a particular equity. Recently, leading retail coffee company Starbucks Corporation (NASDAQ:SBUX) has been coming under some decent selling pressure. Traders should note that the stock peaked out on June 5th, 2017 at $64.87 a share. Since that high pivot in SBUX stock the shares have declined to $58.17. The current pattern is still signaling weakness as it trades below its 50-day moving average. Traders and investors should now watch the $55.00 area as the next major support level for SBUX stock. This is a chart level where the stock was supported in March 2017. This area will usually be supported by the institutional money once it is retested. Starbucks Corp will report earnings on July 27th, 2017 after the closing bell.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: