SBUX closes above its opening price after recovering from early selling pressure
Starbucks Corporation (SBUX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SBUX ended the month -5.64% lower at 73.59 after gaining $0.11 (0.15%) today, strongly underperforming the Nasdaq 100 (1.96%). Trading up to $0.77 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, SBUX actually lost -3.09% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SBUX as at Jun 30, 2020):
Tuesday's trading range has been $1.07 (1.45%), that's far below the last trading month's daily average range of $2.17. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SBUX.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 74.33 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 71.06 where further sell stops could get activated. Further selling might move prices lower should the market test May's nearby low at 70.65.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for Starbucks. Out of 36 times, SBUX closed higher 55.56% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.11% with an average market move of 1.48%.