Adding to Chart Sugar's keen observations, I see this more plainly as a descending channel. If price rises to that descending upper line, one might short SBUX to the $43 target shown.
Chart Sugar : $SBUX : This fascination wth pendants has me measuring them against gaps. Can flags assist in timing assured shorts over the four step down concept? We see here in $SBUX that the 2nd or middle flag was strong YET failed to fill the prior gap. Follow me here or twitter @BeautyBubble.
Investors have a habit of trying to buy fallen leaders, and SBUX falls into that camp.
But with the stock bouncing up to the downtrendline and the moving averages weak (20D 70, it's sure not time to bottom fish! Time to take the position of the main trend, which is down in this case.
After a rebound from 2 trend lines layer, the price went back to test the downtrend line. The present symmetrical triangle should be the signal for the continuation. A breakout over the 50% would confirm target (51.37 - last support level).
