SBUX, TWTR update July 4

SBUX: Price has been in a multi-month (Red) down trend channel and is back testing the upper trend line. A break above will be bullish and could target $60 for gap fill. Our preferred count is that Primary IV is underway targeting $50ish ultimately. Hence, now intermediate b of major c is likely underway. Note all the SMAs are bearish now (compare with 2015 for example), which simple doesn’t bode well longer term and is in line with our count.

sbux

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TWTR: One of the few stocks we’re actually getting bullish on. Why? It is bottoming in out preferred target zone and putting in a nice base. Now we need to see clear 5 waves up, a retrace and breakout to jump on the bull band wagon. This hasn’t happened yet, but a break above $21, the March high, will be a good start. However, a drop to $11 followed by a strong reversal would be a fantastic set up as well. Hence, we’re keeping a close eye on it.

twtr