Today's fall off marks a lower high for SBUX, meeting the classic definition of a downtrend (lower highs/lower lows). Shares hit a high of $24.45 on Jan. 21, dropped to $21.26 on Feb. 5, and then rose 10.3% to $23.46 on Friday.
There's a support area from $22.5 down to around $21.5. If the price fails to move below $21.26, then it's not a downtrend but something else -- perhaps a traingle of some sort.
Anyhow, there's 5% or 6% easy potential on the downside, so it could make a decent directional bear trade, with the possibility of a breakdown below $21.26 leading to even lower levels.
The macd has shown bull signals since Feb. 12. The level, however, is declining toward the zero line. It's now at 0.12.
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Topic: Starbucks coffee
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