STARBUCKS CORP.: MURREY ANALYSIS

Current trend

Shares of Starbucks Corp., one of the largest companies that owns the coffee shop chain of the same name, traded for a long time within a long-term downward channel but at the beginning of this month they left it, breaking the lower limit: the quotes reached 71.88 (Murrey level [–1/8]) and are trying to start corrective growth. After the consolidation above the key “bullish” pivot point at 81.25 (Murrey level [2/8]), supported by the middle line of Bollinger bands, the asset will return to the downward channel and continue to grow to the central mark of Murrey’s trading range 87.50 (Murrey level [4/ 8]) or 93.75 (Murrey level [6/8]). With a repeated breakdown of 75.00 (Murrey level [0/8]), the negative dynamics may resume to 68.75 (Murrey level [–2/8]).

Technical indicators reflect a continuation of the downward trend: Bollinger Bands are directed downwards, the MACD histogram is stable in the negative zone, and Stochastic is approaching the overbought zone and may turn downwards.

Support and resistance

Resistance levels: 81.25, 87.50, 93.75.

Support levels: 75.00, 68.75.

Trading tips

Short positions may be opened below 75.00, with the target at 68.75 and stop loss 79.00. Implementation time: 5–7 days.

Long positions may be opened above 81.25, with the targets at 87.50, 93.75, and stop loss 78.00.