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Starbucks, a global coffee chain, recently faced a decline in premarket trading after suspending its 2025 outlook and releasing disappointing preliminary quarterly results. This decline comes as the company’s new CEO, Brian Niccol, has begun implementing a turnaround strategy aimed at boosting sales growth and addressing competitive challenges in key markets like the U.S. and China.
Since Niccol’s appointment, Starbucks shares have increased by approximately 28%, but have remained stagnant this year due to sales declines and increased competition. As the company undergoes strategic changes, investors are closely monitoring key technical indicators on Starbucks’ chart to identify critical price levels that may impact the stock’s performance in the near future.
One significant development on Starbucks’ chart is the consolidation within a symmetrical triangle pattern since mid-August, following a breach of the 200-day moving average. Despite being on the verge of a breakdown below the triangle, buyers have defended the lower trendline and the 50-day moving average, indicating potential areas of support for the stock.
If Starbucks shares breach the symmetrical triangle, investors should monitor the stock’s response near the $90 level, which coincides with a trendline connecting past lows and highs. A break below this level could lead to a decline to around $83, where buyers may show interest near the June swing high and the neckline of a double bottom pattern.
On the upside, resistance levels near the $99 and $107.50 marks may come into play during a recovery. The former level is near a trendline from March 2023 to September of this year, while the latter is close to a significant swing high from November 2023. A decisive close above $99 could signal a potential move towards $107.50, where investors may consider exiting positions near the measured move price target.
Overall, as Starbucks navigates through a period of transition under new leadership, investors are closely monitoring key price levels on the chart to assess the stock’s performance and potential trading opportunities. By staying alert to critical support and resistance levels, investors can make informed decisions based on technical analysis and market trends impacting Starbucks’ stock price.
