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December 5 Chart of the Day - Starbucks

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Starbucks (SBUX) is making headlines this week for making 12 consecutive down days losing X dollars of market cap and blah blah blah as the stories go...

When we looked at their chart back on June 15, 2023 price was trading around $101.  Today it's hovering around $96.  So what's the big deal?

Back then we wrote "The $100-$105 range has acted as a consolidation zone multiple times during the past few years so to traders it should come as no surprise that price has return yet again to this area."

With a range roughly from $90 to $107 price has crossed the $100-$105 change control zone 4 times so far since June.  

Change control zones are one of the five price action tools we teach when charting anything.  By definition, they are an area that represents where neither the bulls nor bears are in charge.  Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it.  Or, price can trade aimlessly sideways within it.  When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.

So from a price action technical analysis perspective price is doing what price does regardless of what investors would like for it to do.

We've included an updated chart as well as the chart from June.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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Today:

 

June 2023

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