The Starbucks stock has been on the decline since peaking in early April. While the chart seems to portray a vicious downtrend, it is only down about 10% from those highs – not a performance to be proud of, but not a cataclysmic drop either. However, it now appears the stock may have found support at 55 and is ready to rise up again.
Since hitting a low in June, you’ll see a higher low on the chart has been made – a good start. Monday’s action was constructive, with strong turnover and heavy option flow (specifically the Nov 57.5 call strike). The MACD is turning up, and while it’s a bit early to call a buy signal, it’ll be in view soon. Resistance at the 57-58 level looms large (arrows), but momentum is starting to pick up and the strong buying impulse could move this stock higher in a hurry.
Starbucks (Nasdaq:SBUX) Video Chart Analysis
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About Starbucks
MStarbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; and Channel Development. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, juices, and bottled water. The companys stores also provide fresh food and snack offerings; and various food products, such as pastries, and breakfast sandwiches and lunch items, as well as serve ware, beverage-making equipment, and accessories. In addition, it licenses its trademarks through licensed stores, and grocery and national foodservice accounts.
