Oil & SBUX

Oil is trending higher and approaching levels that have been resistance in the past.  The media talks about the $50 level, but to be more precise it's really closer to the $51-52 level.  These levels are important going back to 2015.  They were resistance in October of 2015, June of 2016, and October of 2016.  Then the became support from December of 2016 through March of this year.  The recent highs in May were right at $52.  There will most likely be significant resistance around these levels again.

 

Starbucks - SBUX is on my radar screen as a potential buy.  It's down big today on some negative earnings news, but it is oversold and approaching levels that have been support in the past.  The lows in February and again in March were right around the $54 level.  Today it is trading just above that.  Once again, the key here to a profitable trade is to wait until it reverses and buy it on the way up.  DO NOT try to catch the exact bottom.  That's called 'catching a falling knife'.  That is why it's on my radar screen and I haven't entered the trade yet.