Current trend

Shares of Starbucks Corp., one of the largest companies in the world that owns the coffee chain of the same name, have been declining since mid-November: during this time, the price has reversed from the 106.25 mark (Murrey level [6/8]), returned to the negative part of the trading range and is currently testing the reversal level of 93.75 (Murrey level [2/8]), consolidation below which will continue allow the quotes to decline down to the lower limit of the Murrey trading range at 87.50 (Murrey level [0/8]).

If the level of 96.88 (Murrey level [3/8]) is broken out, supported by the central line of Bollinger Bands, the growth of the instrument will be able to resume within the central Murrey channel to 100.00 (Murrey level [4/8]) and 103.12 (Murrey level [5/8]), but this scenario seems less likely.

Technical indicators show the preservation of the downtrend: Bollinger Bands and Stochastic are reversing downwards, MACD is increasing in the negative zone.

Support and resistance

Resistance levels: 96.88, 100.00, 103.12.

Support levels: 93.75, 90.62, 87.50.

Trading tips

Short positions can be opened below 93.75 with targets at 90.62, 87.50 and stop-loss around 95.60. Implementation period: 5–7 days.

Long positions can be opened above the 96.88 mark with targets at 100.00, 103.12 and stop-loss at 94.60.