Starbucks Corp - (SBUX) - May 1, 2023
Starbucks (SBUX) has returned to the Green Favored Zone of the SIA S&P 100 Index Report from a three-month drop down into the yellow zone. The shares have moved up 19 positions in the last month to 25th place, including a gain of one spot on Friday.
Since bottoming out a year ago, Starbucks (SBUX) has been steadily recovering in a step pattern of rallies followed by periods of consolidation at higher levels. Along the way, the shares have established a new uptrend of higher lows, completed a bullish Golden Cross and snapped out of their previous downtrend.
In the last few days, the shares have broken out over $110.00 and continued to climb to a new 52-week high, signaling the start of a new rally phase. Based on a combination of the shares 2021 peak and a measured move from the recent trading range, next potential resistance may appear in the $120.00 to $125.00 area. The $110.00 breakout point reverses polarity to become initial support, up from $105.00.
Starbucks’ (SBUX) recovery trend has embarked on a new upleg in recent days, following a breakout over $110.70, building on a winter of consolidation and continuing an upward trend that started approximately a year ago. Since February, the shares have staged three bullish Double Top breakouts and a Bullish Catapult.
Initial upside resistance appears at the August 2021 peak near $122.25, followed by $132.30 based on a vertical count, and the $140.40 to $143.20 zone which is based on active horizontal counts. Initial support appears near $104.30 based on a 3-box reversal and a retest of a previous breakout point.
With a perfect SMAX score of 10, SBUX is exhibiting strength across the asset classes.
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