Stock of the day: Starbucks

Stock of the day: Starbucks
In today's stock of the day, our focus returns to Starbucks, which is currently trading at a crucial horizontal support level. While the long-term outlook may not be optimistic, this support represents the final line of defense for buyers, who must defend it to potentially reverse the negative sentiment.
To begin with, the price has formed a significant triple top pattern (highlighted in yellow) on the daily chart. The support mentioned earlier corresponds to the neckline of this pattern (depicted in green), and a breakout below it would generate a strong sell signal. Additionally, the current level aligns with the 38.2% Fibonacci retracement, adding further strength to this area. However, sellers possess a significant advantage if they manage to break the major uptrend line (shown in black). Should bears triumph in this battle, the next target lies at the 50% Fibonacci level, which held importance throughout 2022.

Given that indices are experiencing an upward climb, there is a possibility that this positive sentiment could spill over to Starbucks, particularly as the price reaches crucial levels. It's important to note that the sell signal is not yet fully activated, but it would trigger once we witness a decisive break below the green area on the chart.
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