Watch These Starbucks Stock Price Levels as Activist Reportedly Takes Stake

Starbucks (SBUX) shares jumped astir 7% connected Friday to log their highest one-day percent summation successful much than 8 months aft nan Wall Street Journal reported that activistic investor Elliott Investment Management has taken a sizable liking successful nan global java chain and discussed ways to amended its lagging banal price.

Below, we return a person look astatine Starbucks' play floor plan and usage technical analysis to place important value levels to show amid a imaginable reversal.

Shares Carve Out Possible Double Bottom

Starbucks shares sold disconnected aft nan 50-week moving mean (MA) crossed beneath nan 200-week MA to make a death cross awesome successful precocious March. However, since bottoming retired successful early May, nan value has carved retired 2 chopped lows connected above-average volume, perchance marking a double bottom, a classical floor plan shape that forms aft a important diminution and indicates an upside inclination reversal.

It's besides worthy pointing retired that arsenic nan stock’s 2nd trough made a somewhat little low, nan relative spot scale (RSI) made a comparatively shallower debased to create a bullish divergence, a method awesome pointing to easing trading momentum. Moreover, some lows astir align pinch a V-shaped trough that formed betwixt May and June 2022, providing further confirmation of a precocious probability reversal area.

Monitor These Key Overhead Resistance Levels

Looking ahead, investors should show 4 circumstantial levels connected nan floor plan wherever nan java chain’s shares could look overhead trading unit if they proceed higher.

Firstly, nan banal could tally into first resistance astir $82, wherever it whitethorn brushwood sellers adjacent a horizontal line linking a bid of important value points from March 2022 to June this year.

A adjacent supra this level could spot nan value move up to astir $91, an area connected nan floor plan wherever sellers whitethorn beryllium happy to lock successful profits adjacent a multi-month trendline that presently aligns pinch nan downward sloping 50-week MA.

Further upside could substance a rally to nan cardinal $97 region, wherever a trendline linking nan 200-week MA and a bid of price action betwixt January 2021 and February this twelvemonth whitethorn supply early resistance.

Finally, a much bullish move could spot nan shares revisit nan $106 level, a location that sits successful adjacent proximity to a trendline connecting a scope of peaks and troughs making love each nan measurement backmost to December 2020.

Starbucks shares were down 0.7% astatine $78.70 successful caller premarket trading Monday.

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