As predicted on the TradeRadar Track Profit & Loss page this past weekend, we hit our stop at $26 and sold the Starbucks (SBUX) position today.
Late last week the TradeRadar software showed SBUX popping out of the BUY zone. Sure enough, the stock continued to break down. This has resulted in a 6% loss.
My expectation has been that patience would be rewarded as Starbucks ramped up efforts to open new stores overseas. With growth in the US slowing, this seemed to be the appropriate strategy and recently opened international stores do seem to be showing accelerated growth.
I still believe there is good potential in Starbucks but for now it is best to step aside.
Looking at the charts, there doesn't seem to be much in the way of support below $26. We will most likely have an opportunity to buy the stock at a lower price and at a time when signs of its turnaround are more apparent.
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