GOOGL, SBUX update April 21

Both stocks had earnings misses today and were sold of as a result after hours. Let’s assess the charts to the best of our abilities

SBUX: The advance off the February $53 low to recent $62 high has been choppy, overlapping, and 3-waves; strongly indicative off a corrective wave up. An ending diagonal triangle formed over the past month (green lines), and price will want to revisit the start of it: $56 for starters. The decline from the ATH in November last year to to the February low is counted as major a, the recent high as major b and price is now in major c.

sbux

A c=a relationship, measured from b is at $50ish. That’s a first good conservative target for Primary IV. We can then assess if c wants to extend to 1.382x, 1.618x a. Note the blue horizontal lines: S/R at $57, $55, $51. Note also how the long term simple moving averages have turned late last year, early this year from a nicely bullishly stacked configuration (fastest SMA on top, slowest below; all ascending) to a somewhat bearish sideways mess: the long term trend is changing from up to down. After hours, SBUX closed at $58.22; that’s below last week’s low and indicative of a new wave down, which -we believe- should ultimately target $56.5 to $55.5; right at the lower descending trendline and in between $57-$55 support.

Please also note the daily A.I. gave a sell signal today; indicating all things weren’t well with the coffee maker (in the end, that’s all SBUX really is…; a coffee maker)

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GOOGL: Similarly to SBUX, also for this ticker, the advance off the February low has been choppy and we can see how price has mainly remained in the green uptrend channel and at Tuesday’s open reached a perfect c=1.382x relationship. Now that can be either a 3rd or c-wave, but with the after hours trade into the low-$730s, there’s overlap with red a and as such it cannot be counted as a 1st wave, but an a-wave. In this case a bear flag is forming and a c=a relationship targets $660… Ouch… Of course the c-wave can easily extend to 1.618x a, but let’s not get greedy…

googl

Also here we already had an ideal A.I. sell signal on Wednesday April 20th, which correctly foretold the next big move. Support is at $720, $715 (200d sma), $700 and $680. A retest from below of the lower green and blue trendlines can logically be expected at some point, though not necessarily. Just something to be aware of.