Sep 11, 2020, 11:15:29 AM
Starbucks Corp. (SBUX/NASD): general review
Current trend
Starbucks has seen a 4.5% corrective decline from a 6-month high of September 3. Over the past three months, the issuer's quotes have strengthened by 17%. Starbucks is adding new plant-based foods and beverages to menus across Asia in response to growing demand for healthy food in the region. Food delivery partners are Impossible Foods and Beyond Meat.
Over the past week, Starbucks shares fell 3.93%. The S&P 500 Index fell 6.78% over the same period.
Support and resistance
Bullish sentiment prevails in the issuer. Quotes renewed their local highs. At the moment, the company's shares are consolidating within the range of 83.50–89.00. There is potential for further growth. Indicator signals are different: the price fixed above MA (50) and MA (200); MACD started to decline. It is better to open the positions from the key levels.
Comparative analysis of multiples of the company and competitors in the industry indicates the neutrality of the instrument.
Resistance levels: 89.00, 92.00.
Support levels: 83.50, 80.00, 77.00.
Trading tips
Long positions may be opened after the price consolidates above the level of 89.00. The closing of the profitable positions is possible at 94.00, 98.00, and 102.00. Stop loss – 84.00.
Short positions may be opened after the price consolidates below the level of 83.50 with the targets at 75.00–70.00. Stop loss – 88.00.
Implementation period: 3 days.
Scenario
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Timeframe
Intraday
-
Recommendation
BUY STOP
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Entry Point
89.00
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Take Profit
94.00, 98.00, 102.00
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Stop Loss
87.35, 84.00
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Key Levels
77.00, 80.00, 83.50, 89.00, 92.00
Alternative scenario
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Timeframe
Intraday
-
Recommendation
SELL STOP
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Entry Point
83.45
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Take Profit
75.00, 70.00
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Stop Loss
88.00
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Key Levels
77.00, 80.00, 83.50, 89.00, 92.00
