DAL, SBUX update June 21

DAL: heavy call volume coming in the airlines recently. Not too surprising as the downside move for now appears to have come to an end, with major a/1 complete or close  to complete. With 5 down we expect a 3-wave bounce to around $45 +/-$2, which is where the 200d and 50d SMAs reside as well as the 61.8% retrace of the prior decline from Primary B. After that bounce new lows should follow to high $20s



SBUX:  remains in the red downtrend channel and within the blue horizontal S/R zones. The recent “advance” from red “a?” is more sideways then up causing the TIs to become Overbought, setting them up for the next leg down. Price remains below the important weekly SMAs, which are all pointing down. At this point not a stock -we believe- suitable for long term investing. In fact we still anticipate $50 before all is said and done. For now $57ish is possible before the next leg down.