Swing Trade Ideas – (SBUX) – June 2, 2020
Our bearish trade for Tuesday, June 2nd is SBUX (Starbucks Corp).
SBUX is part of the Consumer Discretionary (XLY). XLY has experienced a 5.85% gain in the last month and its 1M and 6M trends turned bullish on the 14th and 18th of May respectively.
SBUX’s 6M trend turned neutral on April 22nd and has not been able to break above $80 resistance after multiple attempts. With a technical score of 6 (out of 10), SBUX is a neutral stock that will likely continue lower.
As a stop loss, if SBUX were to trade above $80 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves below $1.54.
