STARBUCKS CORP (SBUX) - September 9, 2022
Starbucks’ (SBUX) relative strength has steadily been improving for several months now. In the SIA NASDAQ 100 Index Report, SBUX bottomed out in April deep in the red zone and has climbed back up toward the top of the Yellow Neutral Zone. After moving up 26 positions over the last month, Starbucks is currently sitting in 29th place, 3 spots outside of the green zone.
Since bottoming out in the spring near $70.00, Starbucks (SBUX) shares have been steadily recovering, and are currently approaching a potentially significant resistance test. Over the last few months, a bullish Cup with Handle base has been forming consisting of a large saucer bottom, followed by a smaller, shorter rounded bottom.
A breakout over $90.00 would complete the base and signal the start of a new uptrend. Should that occur, nest potential resistance may appear near the $100.00 round number, then the $105.00 to $115.00 range where it traded previously. Initial support currently appears at the 50-day moving average near $83.00.
A downtrend in Starbucks (SBUX) was successfully contained by previous support near $68.00 and bottomed out back in May. Since then, the shares have been on the rebound, completing bullish Double Top and Spread Double Top breakouts that have extended into a bullish High Pole.
The shares are currently approaching resistance in the $91.50 to $93.30 zone where a breakout would confirm the uptrend with next resistance possible near the $100.00 round number, a horizontal count near $101.05, or previous column highs/lows near $105.15. A failure, however, would carve out the right shoulder of a possible head and shoulders top with initial support near $81.30 based on a 3-box reversal.
With its bullish SMAX score increasing to 8, SBUX is exhibiting strength against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.