Starbucks Stock Analysis: Bullish Momentum Continues Amid Expansion Plans

Starbucks (NASDAQ: SBUX) has announced plans to open 500 new stores in the Middle East, marking a significant expansion under its new CEO. This move has sparked interest among investors, especially given the recent bullish momentum in Starbucks’ share price.

From a technical analysis perspective, the stock has been in an uptrend since breaking out of a downward trend that began in July 2021. The recent breakout above key resistance levels has further fuelled optimism among traders.

Key Technical Levels to Watch

• Current Price Action: Starbucks has surpassed the $103.32 resistance level, followed by a breakout above $107.66, reinforcing the bullish trend.
• Next Resistance Level: The stock is approaching $115.47, a key level that, if breached, could pave the way for a potential rally back to its all-time high of $126—an 11% increase from current levels.
• Support Levels: Near-term support is now at $107.66, the former resistance-turned-support. A drop below this level could signal a weakening of the bullish momentum. However, a decline below $100 per share would indicate a lower likelihood of reaching new highs.

Technical Indicators & Momentum

The MACD indicator is currently in overbought territory, but historical trends suggest further upside potential. As Starbucks heads towards its ninth consecutive green week, the bullish momentum remains intact, at least for now.

Conclusion

With Starbucks’ aggressive expansion strategy, strong technical breakouts, and sustained bullish momentum, investors are eyeing a potential move towards the $126 all-time high. However, traders should watch key support levels and momentum indicators to assess whether this rally can sustain its strength.