Starbucks shares have been picking up buying momentum that a few downtrend reversal signals can be seen on its daily price time frame. Stock prices seem to have formed a double bottom pattern and is on its way to test the neckline.
Take note thought that stochastic is deep in the overbought region and looks ready to head lower. In that case, a quick retracement might be seen or an actual selloff to form yet another bottom at the $70/share level.
Starbucks Shares Outlook
The forecasts for Starbucks shares are looking brighter, as the coffee company recently announced that it would offer college scholarship for some employees. While this caused many to worry that the company would soon lose its part-time employees with this college scholarship, others took it as a sign that the company is confident enough in its profits that it can afford to spend more on socially-responsible causes.
“In the last few years, we have seen the fracturing of the American Dream. There’s no doubt, the inequality within the country has created a situation where many Americans are being left behind,” says CEO Howard Schultz. He called Starbucks “a brand and company defined by humanity and the human experience and what happens in our stores.”
Apart from that, Starbucks is also working with Duracell to bring wireless chargers to its stores. This could encourage more customers to visit its branches, thereby boosting profits and Starbucks shares.
A break above the neckline could mean a rally up to the $88/share levels for Starbucks shares. Take note that the double bottom spans $68 to $78. A selloff, on the other hand, could lead to another test of $68/share.
Right now, it appears that the price is still picking a direction, as it is moving in between the 100 and 200 SMAs on the daily time frame.
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