Swing Trade Idea – (SBUX) – September 15, 2020
Our bullish trade for Tuesday, September 15th is SBUX (Starbucks Corp). SBUX is part of the Consumer Discretionary (XLY). XLY has experienced a 2.8% gain in the last month and its 6M trend turned bullish on May 18th.
SBUX is on a bullish trend and has recently pulled back to the $83 support level and bounced higher with strong momentum indicating further upside potential. With a technical score of 8 (out of 10), SBUX is a strong stock that will likely continue higher.
As a stop loss, if SBUX were to trade below $84 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 above $3.98.
