$SBUX with a neutral outlook following its earnings #StocksThe PEAD projected a neutral outlook for NASDAQ:SBUX after a negative under reaction following its earnings release placing the stock in drift D with an expected accuracy of 66.67%.
SRB trade ideas
$SBUX Analysis, Key Levels & TargetsNASDAQ:SBUX Analysis, Key Levels & Targets
Time for some new swing targets…
Target 1 at 94, and Target 2 @77… and that is the start, but all of the other targets are in play as well if we dip even harder… and target 1 and two would create a head and shoulders if hit…
---
I am not your financial advisor. Watch my setups first before you jump in… My trade set ups work very well and they are for my personal reference and if you decide to trade them you do so at your own risk. I will gladly answer questions to the best of my knowledge but ultimately the risk is on you. I will update targets as needed.
GL and happy trading.
IF you need anything analyzed Technically just comment with the Ticker and I’ll do it as soon as possible…
Investment Thesis: StarbucksStarbucks has established itself as a dominant player in the specialty coffee industry, with a strong brand image, extensive global presence, and a diversified product portfolio. The company's successful business model, focused on providing high-quality coffee and a unique customer experience, positions it for continued growth. However, there are potential risks to consider, including increasing competition, changing consumer preferences, and potential supply chain disruptions. Overall, Starbucks presents an attractive investment opportunity with the potential for long-term value creation.
SBUX Starbucks Options Ahead Of EarningsIf you haven`t bought SBUX Starbucks after my last chart:
Then you should know that the rally could continue, in my opinion.
Looking at the SBUX Starbucks options chain ahead of earnings , I would buy the $115 strike price Calls with
2023-4-21 expiration date for about
$2.90 premium.
If the options turn out to be profitable Before the earnings release, I would sell at least 50%.
Looking forward to read your opinion about it.
SBUXTRIANGLE BREAKOUT
Major Down
Current Up
Triangle formation. Awaits breakout
Broken towards down side.
Took the position via option at Spot $104.77
25 days out at strike 102.
2 contract with RRR of 1:2 @ $1.14 and $1.16
TP on both contract @1:2 and not let the trade run @ 100.65
Option sold at both 124% profit ITM.
$2.61 n $2.71
Total profit : $3.02
Psycology:
Fear of loss of profit. Did not want to risk it. Mindset wise it has extended quite far, $100 as psycological number. and 4h looking at meeting into resistance.
Shall review
Cracks forming on the bullish movement for Starbucks Starbucks Corporation. (symbol ‘SBUX’) is trading at a profit of around 8% compared to the beginning of the first quarter of the year. The company’s earnings report for the fiscal quarter ending March 2023 is set to be released on Tuesday 2nd of May, after market close. The consensus EPS for the quarter is $0,64 compared to the same quarter last year of $0,69.
‘ Despite insider selling from CFO (chief financial officer) and EVP (executive vice president) of shares totalling around HKEX:400 ,000 in February, accounting for less than half a percent (0.49%) reduction in stake ownership in the coffee giant, insiders holding decreased by a relatively small proportion- in line with the broader market selling trend.’ said Antreas Themistokleous at Exness.
From the technical analysis perspective the share has been consistently trading relatively well in the past 10 months with some technical indicators pointing to a possible correction in the short term. The price is approaching the strong reaction area of HKEX:110 which was a resistance level in October and December of 2021 as well as in early February of 2023. Even though the overall trend is still bullish there are some signs of weakness and possible correction to the downside in the coming sessions.
Firstly the Stochastic oscillator is in the extreme overbought area for the last 3 weeks and also the 50 SMA touching the 100 SMA is not giving any validation to the bullish narrative indicating that a downward correction is a possible scenario in the short term. If this is confirmed we might see some major support around the HKEX:103 ,50 price area which is the crossing of the 2 SMAs and also the 23.6% of the daily Fibonacci retracement level.
SBUX: Short IdeaGapped down on bad news. Coming off daily divergence. Weekly overbought and possible outside candles breakdown. First target is the size of the new gap which also happens to be figure support at 100, 20 EMA, and 500 SMA, so might be good reversal long from there. Extension would be to about 96. Stop is daily close inside the gap.
SBUX - Minor Low after earningsG/G Trend
21/34 Propulsion Dots.
RAF is below extremes - Minor Low Entry
Vscore -2 Support
Volume support in this area.
Inside candle after earnings
Enter above high of inside candle @ 106.20
Breakeven @ 107.80
Profit @ 109.90
17March23 Options. 39 days until expiration, but we will hopefully get a bounce after the earnings drop. I don't want to buy 80 days out.
105 Calls.
SBUX Near Crucial Levels and $117 is the Next TargetOn the daily chart, SBUX swings within the middle of an ascending wedge and tries to stabilize above the horizontal resistance area between Fibonacci level of 78.6% at $107.23 and $108.87.
While we are now waiting for SBUX to breakout above the ascending wedge, which paves the way to advance towards $117.80-120.76 as initial targets. With setting the levels of 126.32-131.24 dollars as additional targets in the case that the SBUX managed to exceed the previous targets and hold above them.
On the opposite side, if SBUX fails to hold within the rising wedge range and breaks down, we may witness a return towards the previous swing area near the level of $103.89 and also near the EMA-50. If SBUX also breaches these lines, we may witness a further decline towards the levels of $98.93-96.17 as next bearish targets.
SBUX - Bearish Divergence - Short OpportunitySBUX seems to be showing a bearish divergence with the price action and RSI.
If you can look at the chart, see how the Price action is creating Higher Highs, and RSI indicator is creating Lower Highs. That is a bearish indicator.
Obviously, we do not want to make our decision just by using one indicator.
We also see a rising wedge (in yellow) which we can use to mark our entries. As drawn on the chart, if the price breaks and closes below the rising wedge, we can enter PUTS and ride it until after earnings.
The trade will get invalidated if the price breaks and closes above the bigger rising wedge (blue) , or (109.76) which we can use as a Stop-Loss.
I've also marked some key support levels on the downside which you can use to plan your exits.
TRADE:
Option 1: (ITM) $110 Puts Expiring 3/17/2023 (around $530 per contract)
Option 2: (OTM) $95 Puts Expiring 3/17/2023 (around $100 per contract)
Stop-Loss: Price closes above 109.76
Risk: HIGH . (This can easily backfire and run up with the earnings FUD and depending on the result.) But I'll stick to my strategy and add the trade with a tight stop.
As earnings are approaching, it is always risky to trade the ticker due to high volatility and not having a clear direction bias of the result.
This is just my opinion. Do you own research before entering the trade.
Let me know what you think in the comments below. Would love to see some of your inputs.
