Current dynamics

Shares of Starbucks Corp., one of the largest companies that owns the coffee shop chain of the same name, are correcting at the 102.54 mark.

The latest data showed that the gap with the main competitor in the Asian region, Luckin Coffee, has become even greater, so the new head of the company, Brian Nikkola, decided to restructure the business. In particular, it was announced that they were looking for a strategic partner with whom they would continue to develop the brand in China. At the moment, interest from several private investors has already been reported, but the corporation's plan involves not just investments, but business expansion.

The company's latest financial report confirmed ongoing problems, with revenue of $9.07 billion, below analysts' estimates of $9.38 billion and $9.40 billion for the same period a year earlier. Earnings per share (EPS) came in at $0.80, also below preliminary estimates of $1.03 and $1.06 a year earlier.

Support and resistance levels

On the daily chart, the asset is correcting upwards, being in a channel with boundaries of 107.00–97.00.

Technical indicators strengthen the buy signal: the EMA fluctuation range on the Alligator indicator continues to expand, and the AO histogram forms new correction bars, being in the buy zone.

Support levels: 100.00, 91.00.

Resistance levels: 104.00, 112.00.

Trading scenarios

If the asset continues to grow and the price consolidates above the resistance level of 104.00, it is worth opening long positions with a target of 112.00 and a stop loss of 100.00. Implementation period: 7 days or more.

If the global decline of the asset continues, and the price consolidates below the minimum of 100.00, you can open short positions with a target of 91.00 and a stop loss of 103.00.