Sep 15, 2020, 10:20:54 AM
Starbucks Corp. (SBUX/NASD): general review
Current trend
Starbucks shares are trading at a discount of 2.6% to a 6-month high of September 3. The growth of the issuer's quotes since mid-August amounted to 10.5%. As part of the new social distancing rules, Starbucks plans to launch a new format of Starbucks Pickup, a take-out-only format, in the busiest U.S. city centers.
During the previous week, Starbucks shares grew by 0.42%. S&P 500 index went down by 1.25% during the same period.
Support and resistance
The shares of the company are dominated by "bullish" tendencies. The issuer has set new local highs. At the moment, #SBUX quotes are consolidating in the range of 83.50–89.00. The instrument has the potential to further growth.
Indicators differ: the price consolidated above MA (50) and MA (200); and MACD started to go down. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that #SBUX shares are neutral.
Resistance levels: 89.00, 94.00.
Support levels: 83.50, 80.00, 77.00.
Trading tips
If the price consolidates above the resistance level of 89.00, one should expect the company's shares to further grow. Potential profits should be locked in by orders at 93.00, 97.00 and 100.00. Stop-loss – 85.00.
If the price consolidates below 83.50, sales of #SBUX should be considered. The movement potential is aimed in the area of 77.00–73.00. Stop-loss – 88.00.
Implementation time: 3 days.
Scenario
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Timeframe
Intraday
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Recommendation
BUY STOP
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Entry Point
89.00
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Take Profit
93.00, 97.00, 100.00
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Stop Loss
87.65, 85.00
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Key Levels
77.00, 80.00, 83.50, 89.00, 94.00
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
77.00, 73.00
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Stop Loss
88.00
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Key Levels
77.00, 80.00, 83.50, 89.00, 94.00
