Is it time to switch to defensive stocks like
SBUX
when recession is looming and there is a sell off on the market?
Fundamental analysis - all the financial indicators are pretty consistent and positive, apart from one that may deter the investors - rise of liabilities against the assets and equities which is exceeding the norms.
Technical analysis - looking at the monthly timeframe it is clearly visible the development of fourth running correction which can be followed by the final fifth wave with a potential target of £120 to $150.
Risks - it is critical to wait for earnings report in May which will confirm the positive sentiment and hence the proposed scenario, or an alternative analysis would need to be made.
Therefore, Starbucks is still quite stable in its earnings and dividends, and the next quarterly report will be crucial for another short to mid term bull run.
Are you looking to buy these shares or have you got another view on the possible development?
Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.
Thanks
NB - comparing the type of Running Correction that has been experienced in Starbucks it may be possible to see similar one in McDonalds which is only starting to develop
SBUX
when recession is looming and there is a sell off on the market? Fundamental analysis - all the financial indicators are pretty consistent and positive, apart from one that may deter the investors - rise of liabilities against the assets and equities which is exceeding the norms.
Technical analysis - looking at the monthly timeframe it is clearly visible the development of fourth running correction which can be followed by the final fifth wave with a potential target of £120 to $150.
Risks - it is critical to wait for earnings report in May which will confirm the positive sentiment and hence the proposed scenario, or an alternative analysis would need to be made.
Therefore, Starbucks is still quite stable in its earnings and dividends, and the next quarterly report will be crucial for another short to mid term bull run.
Are you looking to buy these shares or have you got another view on the possible development?
Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.
Thanks
NB - comparing the type of Running Correction that has been experienced in Starbucks it may be possible to see similar one in McDonalds which is only starting to develop
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