Starbucks (SBUX) is entering in a expanded flat structure

Elliott Wave Forecast Team ElliottWave-Forecast.com

Starbucks Corporation (SBUX) is an American multinational chain of coffeehouses and roastery reserves. It is the world’s largest coffeehouse chain. As of November 2021, the company had 33,833 stores in 80 countries, 15,444 of which were located in the United States. Out of Starbucks’ U.S.-based stores, over 8,900 are company-operated, while the remainder are licensed.

SBUX completed a cycle from March 2020 low in July 2021 peak and we labeled as wave I. Then we could see a double correction ((W)), ((X)) and ((Y)). A clear 7 swing correction to complete wave II in May 2022. From here, we were calling a beginning of a new rally in the stock.

Starbucks (SBUX) Elliott Wave analysis – December daily chart

Starbucks (SBUX) bounced from the May low ended an impulse at $93.63 as wave (1). After this, a flat correction appeared making 3 swings pullback where wave B was a triangle. Wave (2) ended at $82.50. The rally continued and we expected that wave 1 in red finishes soon and then see 3, 7 or 11 swings correction to complete wave 2 and continue with the uptrend.

Starbucks (SBUX) Elliott Wave analysis – June daily chart

The path followed as expected, but the correction that began in February damaged the possibility of continuing the rally for now. Therefore, we have adjusted the count. We can clearly count 5 waves from May 2022 low that ended at $110.83. We call this structure wave ((1)). Then, the fall from February high ended at $97.19 completing wave (A). This correction could have been the end of the wave ((2)) and continue the rally; howerver, the price action has denied it. The bounce from the end of the wave (A) is part of an expanded flat correction. This one reached $115.48 finishing the wave (B).

Currently, the share price of SBUX has broken below $97.19, indicating that the correction could continue. That is why the most convenient structure to follow is an expanded flat. Wave ((C)) should build a bearish impulse or ending diagonal, as indicated on the chart, to finish wave ((2)) and look to continue the rally.

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.