A few days ago at work my only friend Mr. I won't name him approached me and asked me if he should buy $SBUX...so I told him relax, don't get so emotional and let me look into this for you. He went on about how $SBUX is expanding and going into China and has new teas and how he is obsessed with this company. And still, I remained calm and told him relax.
To help him make a decision, I created the following charts and analysis.
Monthly Chart
Below I have the Monthly Chart of $SBUX, the lows way way back in the days is the beginning of 2009, since then like most stocks $SBUX has been in a massive uptrend (refer to the green dotted trend line). But as you can see, it hit the $58- $60 range twice. Right now $SBUX is at its highs, its near the $58- $60 mark again. Personally, I would wait it out and let the stock complete the "M" formation that it is making on the monthly chart, possibly a pullback in the the $45 range would be a reasonable buy. I am not saying this stock has no upside potential, it can go as high as it likes and if you are that type of investor who believes in long long long term growth then shit buy now! But if you want a calculated entrance into $SBUX, either let it close above $58-$60 range and monitor it, but if it does not do that wait for a retreat down to the bottom of the range around $45. *right click chart, open in new tab*
Here we have the weekly chart of $SBUX illustrating in a bit more detail what the stock is up to. Again I didn't do no magic I just switched the chart time from monthly to weekly and left my drawing on. The weekly chart also tells the same story. The weekly chart how ever does show an uptrend, if look at the $45 range when the stock was there last it has been in an uptrend ever since, only something massive can stop this uptrend like what is happen now, but buying in this zone really puts the buyer at a disadvantage as the stock can just as easily go back to $45. I do however like the $50 mark as a good exit area if I was a buyer right now and the stock didn't go up and rip through $60. So for someone investing 100 shares right now, that is potentially a $700 risk that they must be willing to take if the the stock doesn't go up as planned, then I'd make $50 a good and reasonable spot to exit. Then you can reassess the trade, if it goes down to $45 get back in. But why waste your time and money? Only buy when you need to not when you want to, so just wait till $45, if not then wait until it goes above $60-$61. *right click chart, open in new tab*
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