Starbucks Corp. - (SBUX) - February 13, 2023
Starbucks (SBUX) has been steadily climbing back up the rankings in the SIA S&P 100 Index Report. Starting deep in the red zone back in June, SBUX has worked its way back up into the Green Favored Zone for the first time since the summer of 2021, and it is currently sitting in 24th place.
Starbucks (SBUX) has been steadily recovering lost ground since bottoming out in the $65.00-$70.00 range last summer. Over the last nine months, an uptrend of higher lows has not only emerged, it has accelerated since the shares broke out of a bullish Ascending Triangle base over $90.00 back in November. A Golden Cross of the 50-day average over the 200-day average last fall also confirmed that the trend had turned positive.
Technical signals have remained positive into 2023 with the shares recently retesting their 50-day average near $103.40 as support and holding above the $100.00 round number. Initial upside resistance appears near $115.00 based on previous highs, then the $120.00 to $125.00 zone where the summer 2021 peak and a measured move from the Ascending Triangle converge.
Since breaking out of a base back in July, Starbucks (SBUX) has been under accumulation, steadily climbing a staircase of rallies followed by periods of consolidation at higher levels. A November rally followed by a small 3-box consolidation and then the recent Double Top breakout has completed a Bullish Catapult pattern, signaling the start of a new rally phase.
Previous column highs suggest potential upside resistance may appear near $115.15, or $122.25, followed by the $132.30 to $134.95 area which is based on vertical and horizontal counts. Initial support appears near $100.25, based on a 3-box reversal and a retest of the $100.00 round number.
With a bullish SMAX score of 9, SBUX is exhibiting strength against the asset classes.
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