Despite the selling early on this morning in Starbucks (SBUX) it has managed to recover quite nicely. However, I don’t think today is the day you want to trade it or even buy it and see what it does next week.
Instead I think you need to wait for this triangle pattern that it is stuck in, to work its way out and decide if it will break out or break down. If it had to guess, I think we will see the strength in the broader market today carry into next week and as a result should bring SBUX with it, but still, wait for the confirmation to the upside, otherwise, you may just get stuck in the range it is currently trading in.
Here’s the SBUX trade analysis:
