Short Term Trading Set-Ups 07/09/2026

 Today we will look at two stocks that show possible short term trading set-ups. The first stock we will look at is Booking Holdings, Inc.(BKNG). Of the two stocks we will mention today, this is the most straight forward set-up.

On the 60 Minute chart we can see a fairly sharp move lower from the 188.31 high on 7/07/2026. This morning BKNG touched 170.31 before moving higher. This low formed with a bullish divergence on the RSI(5), possibly signaling a short term low. After moving higher off this low, we see increasing RSI(5) until an hour before close, when we see a slight dip. MACD has now turned positive with this move higher, and the slight dip in the RSI(5), coupled with rising MACD, indicates a short term buy signal. At the moment this can be interpreted as a corrective move in a longer term downtrend, or the beginning of a new move higher. Either way, we should see a continuation of the move higher up to the Upper Bollinger Band, currently at 183-184. Another pricing method we use indicates a move to a minimum of 177-178.

 The second stock today is Starbucks Corporation(SBUX). This stock has not yet formed a buy signal, but is showing interested signs of forming just that. 

SBUX put in a short term low on 7/06/206 at 100.09. Since then it has moved higher in somewhat choppy fashion up to today's high of 107.45. The wave structure from the 100.09 low shows a move higher to 105.75, a zig-zag correction to 101.85, followed by another move higher to 107.45. It is currently moving lower again after that high. The set-up gives us a very precise idea of where this move lower will end, and if it does complete at that level, we should see another move to the upside.

Given the wave structure thus far. we would expect this move lower to complete between 104.1-105.1. That should correspond to an oversold reading on the RSI(5), and a dip in the increasing MACD line. This would be a bullish indication. From there we see a minimum move to 112. This would unfold in three waves, with a move above 109, a small move lower, and a final move to 112. This would be the minimum move. 

As a caveat, a move below 104 negates this scenario, but this provides a pretty good roadmap.

 

Please Donate