Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	96.07
Take Profit	93.75, 90.62
Stop Loss	97.37
Key Levels	90.62, 93.75, 100.00, 103.12, 106.25

Alternative scenario
Recommendation	BUY STOP
Entry Point	100.05
Take Profit	103.12, 106.25
Stop Loss	97.85
Key Levels	90.62, 93.75, 100.00, 103.12, 106.25

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 for the second week in a row.

During this time, the price reversed from the upper border of the central Murrey channel at 101.56 (Murrey level [5/8]), broke into the negative part of the trading range, and fell below the reversal level of 96.88 (Murrey level [2/8]), which will allow it to reach the lower border of Murrey’s trading range at 93.75 (Murrey level [9/8]) and the reversal zone at 90.62 (Murrey level [–2/8]). The key “bullish” level is the central Murrey level of 100.00 (Murrey level [4/8]), supported by the middle line of Bollinger bands, after which the growth will be able to resume to 103.12 (Murrey level [6/8]) and 106.25 (Murrey level [ 8/8]).

Technical indicators confirm the continuation of the downward trend. Bollinger bands are reversing downwards, while the MACD histogram is increasing in the negative zone. Stochastic may leave the oversold zone, which does not exclude the development of corrective growth but will not change the current trend.

Support and resistance

Resistance levels: 100.00, 103.12, 106.25.

Support levels: 93.75, 90.62.

Trading tips

Short positions may be opened from the current level with the targets at 93.75, 90.62 and stop loss around 97.37. Implementation period: 5–7 days.

Long positions may be opened above 100.00 with the targets at 103.12, 106.25 and stop loss around 97.85.