Starbucks Corporation (SBUX) is trading lower by 5% after missing on revenue projections during their 4Q earnings release.
SBUX reported earnings of $0.65 per share, which handily beat the analyst consensus of $0.57 per share. However, Starbucks revenue missed the mark, coming in at $6.07 billion, which missed the consensus of $6.14 billion.
Our analysis of SBUX’s market cycles on the charts below signal more trouble in the future.
On the weekly chart (to the left), Starbucks stock price has rallied since the current market cycle began. But SBUX is now close to breaking down from the point at which it began.
On the daily chart (to the right), SBUX is ending its current cycle with today’s downside gap. Our projection is for a bounce, followed by more downside pressure.
The market cycles on the charts below are designated by the black semicircles at the bottom of the chart.
SBUX Stock Chart (Weekly Bars)
Visit our site for more on our approach to using market cycles to analyze stocks.
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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
