Past performance is not a reliable indicator of future performance
Technicals for Starbucks (US: SBUX) suggest that the stock may enter into a minor bullish correction till the resistance zone before resuming its main bearish correction in the midterm.
- The price broke out of the falling wedge formation but the strong profit-taking sentiments caused the stock to reverse at 87.00. This resulted in a false breakout. However, the subsequent bearish candle appears smaller and weak, which may signal a pause in the selling.
- Bullish pin bar formation above the lower Bollinger band.
- The bullish confirmation candle also forms a morning star pattern.
- RSI Bullish divergence.
Red dotted line = Bollinger upper band
Green dotted line = Bollinger lower band
Blue dotted line = Bollinger middle band