Starbucks Corp. (SBUX/NASD): general analysis
21 May 2018, 10:51
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 56.40 |
| Take Profit | 55.50, 54.50, 54.00 |
| Stop Loss | 57.50 |
| Key Levels | 54.00, 55.50, 56.50, 57.50, 59.00, 60.00 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 57.55 |
| Take Profit | 59.00, 60.00 |
| Stop Loss | 56.50 |
| Key Levels | 54.00, 55.50, 56.50, 57.50, 59.00, 60.00 |
Current trend
Starbucks reported the new expansion to the Chinese market, planning to increase the number of outlets from existing 3300 to 6000 by the 2022 year. Every year the company will open 600 new coffee shops in the country. It is also expanding its collaboration with Alibaba Group, increasing the list of goods and services for internet sales. In addition, next month Starbucks will release the new line of old tea and coffee in China.
Earlier in May, Starbucks sold its rights to sell bagged tea and coffee in Switzerland to the food industry giant Nestle for 7.15 billion USD.
During the last week, Starbucks decreased by 0.19% against the growth of S&P 500 index by 0.51%.
Support and resistance
The stocks are moving sideways. The technical picture is mixed. The instrument is testing the local support and resistance levels of 56.50 and 57.50 correspondingly. The correction can develop further. The indicators’ signals are mixed: the price consolidated below МА (50) and МА (200); MACD began to grow. It is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests that its shares are underpriced.
Resistance levels: 57.50, 59.00, 60.00.
Support levels: 56.50, 55.50, 54.00.
Trading tips
Short positions can be opened after the price is set below the level of 56.50. The closing of the profitable positions is possible at the levels of 55.50, 54.50 and 54.00. Stop loss is 57.50.
Long positions can be opened after the price is set above the level of 57.50 with the targets at 59.00–60.00. Stop loss is 56.50.
Implementation period: 3 days.
Starbucks reported the new expansion to the Chinese market, planning to increase the number of outlets from existing 3300 to 6000 by the 2022 year. Every year the company will open 600 new coffee shops in the country. It is also expanding its collaboration with Alibaba Group, increasing the list of goods and services for internet sales. In addition, next month Starbucks will release the new line of old tea and coffee in China.
Earlier in May, Starbucks sold its rights to sell bagged tea and coffee in Switzerland to the food industry giant Nestle for 7.15 billion USD.
During the last week, Starbucks decreased by 0.19% against the growth of S&P 500 index by 0.51%.
Support and resistance
The stocks are moving sideways. The technical picture is mixed. The instrument is testing the local support and resistance levels of 56.50 and 57.50 correspondingly. The correction can develop further. The indicators’ signals are mixed: the price consolidated below МА (50) and МА (200); MACD began to grow. It is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests that its shares are underpriced.
Resistance levels: 57.50, 59.00, 60.00.
Support levels: 56.50, 55.50, 54.00.
Trading tips
Short positions can be opened after the price is set below the level of 56.50. The closing of the profitable positions is possible at the levels of 55.50, 54.50 and 54.00. Stop loss is 57.50.
Long positions can be opened after the price is set above the level of 57.50 with the targets at 59.00–60.00. Stop loss is 56.50.
Implementation period: 3 days.
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