Have you ever had a friend say they wanted to get into a stock because it was on sale? While shoppers love the word SALE, it does not always mean value. In this case it's Starbucks. Once again, the stock fails as Howard Schultz retires. With new store openings in China at a rate above one a day, it's crazy to believe the chart could be breaking down. But it is.
The RSI says it is entering a new bear market. The full stochastics don't look ready to turn higher any time soon. The PPO has just crossed below zero which suggests staying away until it can cross its signal line. That might only be for a trade.
For me the chart is a no-touch until it can find some support. The most likely place is under $40.
Greg Schnell, CMT, MFTA