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Starbucks (SBUX) Looking to Restructure, Stock Price Plummets

Starbucks $SBUX has been flat, but now turning bearish after revealing 150 store closures. Simply put, growth has stalled and SBUX is no longer the high-growth stock it looked like a few years ago. 

SBUX Weekly Chart

(click to enlarge)

- The weekly chart shows that price has actually flattened since the second half of 2015. Even though there was a new high in 2017, the overall price action was relatively flat.
- This week's sell-off may be a sign of capitulation after this 3-year distribution, or topping pattern. 
- Note that price is breaking below flat, rising support lines as well as the 200-week simple moving average. 
- A bearish trend is likely to follow this completion of an almost 3-year price top. 
- I would not be considering buying the dip just. 
- Instead, I would look at the $40-$43 area as a possible support for the current bearish correction.

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