We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be analyzing a different chart using the Trade Triangles and his experience.
Today he is going to take a look at the technical picture of the Starbucks Corp. (NASDAQ:SBUX).
I hope you are having a GREAT week !
With stocks you use the monthly MarketClub Trade Triangles to tell trend and the weekly MarketClub Trade Triangles to time the entry and exit points.
With the monthly Trade Triangle pointing up and the weekly pointing down Starbucks Corp. (NASDAQ:SBUX) has set up a buying opportunity.
When the weekly Trade Triangle turns red (down) you wait for a new green weekly Trade Triangle (up) and then as long as the monthly Trade Triangle is still green you would go long Starbucks Corp.(NASDAQ:SBUX).
Starbucks Corp.(NASDAQ:SBUX) might be due for a larger correction that could turn the monthly Triangle red. I'm not predicting that, I'm just saying it is something that could happen.
So what do you do if it does trade low enough to put in a monthly MarketClub red Trade Triangle ? The answer is you have to then wait for the next monthly green MarketClub Trade Triangle to go long.
So what ever happens from here on this counter trend correction in Starbucks Corp.(NASDAQ:SBUX), I think that long term it has great upside potential, and is definitely a Chart to Watch from here on out.
Thanks,
Jim Robinson
Profit Trading.com
Have to watch the price of coffee now too. It's finally coming up out of its multi-year malaise.
So do you recommend Starbucks as a buy at this time or hold?
Hi Steven,
With the weekly Trade Triangle down (red) you are waiting on a green weekly Trade Triangle to enter a long position. Right now you are on the sidelines.
Best,
Jeremy