SBUX Surges 4.9%: Breaks $89, Eyes $94 Resistance
$Starbucks(SBUX)$
Starbucks Corp.(SBUX) Surged +4.94%: Coffee Giant Breaks Through $89, Targeting $94 Resistance Zone
Latest Close Data
SBUX closed at $89.42 on December 19th, up +4.94% (+$4.21), trading 24% below its 52-week high of $117.46. Volume surged 91% above average at 16.47M shares.
Core Market Drivers
Strong institutional buying momentum drove the rally as net capital inflow reached $15M despite mixed retail sentiment.
CEO Brian Niccol's turnaround strategy continues gaining traction amid holiday season traffic uptick.
Market optimism around Q1 2025 earnings potential supported the breakout above $87 resistance.
Technical Analysis
RSI(6) spiked to 78.6, indicating overbought conditions but strong momentum.
MACD turned positive at 0.58 with DIF crossing above DEA, confirming bullish signal.
Volume ratio of 1.91x suggests institutional accumulation backing the move.
Key Price Levels
Primary Support: $85.29 (previous resistance turned support)
Strong Resistance: $93.69 (next major ceiling)
Immediate Pivot: $87.30 (today's low, critical hold level)
Valuation Perspective
Forward P/E of 35.86 sits above the historical average of 29.90 but below +1 standard deviation of 35.54. P/S ratio of 2.73x appears reasonable for the premium coffee segment.
Analyst Targets
33 analysts maintain consensus price target of $93.99 (5.1% upside). Rating distribution: 7 Strong Buy, 12 Buy, 16 Hold, reflecting cautious optimism on the transformation story.
Weekly Outlook
Expect consolidation between $87-$92 range as RSI cools from overbought levels.
Break above $93.69 could trigger rally toward $98-$100 zone. Failure to hold $85 support may lead to retest of $82-$83 area.
Risk Disclaimer
Trading involves substantial risk. Past performance doesn't guarantee future results. Conduct your own research before investing.
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