Current trend

The shares of Starbucks Corp., one of the largest companies that owns the coffee shop chain of the same name, are trading in a correction trend at 97.00.

Investors are trying to predict how the change in top management will affect the recovery of economic indicators. Recall that the post of CEO was taken by Brian Niccol, who previously worked in a similar position at Chipotle Mexican Grill Inc., one of the most successful American companies in the fast food segment. Analysts expect that by the end of the year, he will present a long-term plan for the development of the Starbucks brand, in which the key steps will be to increase sales volumes.

Against this background, Baird analysts maintained a positive assessment, confirming the rating of the securities above the market, with the target price of 110.0 dollars, confirming the potential for network expansion, which may mean stable year’s growth of 3.0–4.0%.

The financial report is due on October 31: according to preliminary estimates, revenue will increase from 9.10B dollars to 9.30B dollars, and earnings per share (EPS) will reach 1.04 dollars, the first excess of the 1.00 dollars profit indicator this year.

Support and resistance

On the daily chart, the trading instrument is moving in a corrective uptrend, being in a channel with dynamic boundaries of 100.00–92.00.

Technical indicators strengthen the buy signal: the EMA oscillation range on the Alligator indicator is expanding, and the AO oscillator histogram is forming corrective bars in the buy zone.

Resistance levels: 99.10, 107.00.

Support levels: 94.20, 84.60.

Trading tips

Long positions may be opened after the price rises and consolidates above 99.10, with the target at 107.00. Stop loss — 95.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 94.20, with the target at 84.60. Stop loss — 98.00.