Swing Trade Idea (SBUX) – June 7, 2021
Our bullish trade for Monday, June 7th is Starbucks Corp (SBUX). SBUX is part of the Discretionary Sector (XLY). XLY has experienced a 1.13% decline in the last month and both 1M and 6M trends remain neutral.
SBUX has recently pulled back to the $109 support level and rejected this level on multiple occasions. With a technical score of 4 (out of 10), SBUX is a weak stock that will likely move higher.
As a stop loss, if SBUX were to trade below $108 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 $1.99.
