Starbucks (SBUX) shares jumped nearly 7% on Friday to log their highest one-day percentage gain in more than eight months after the Wall Street Journal reported that activist investor Elliott Investment Management has taken a sizable stake in the 澳洲幸运5官方开奖结果体彩网:global coffee chain and discussed ways to improve its lagging stock price.

Below, we take a closer look at Starbucks' weekly chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify important ꦗprice levels to monitor amid a potential reversal.

Shares Carve Out Possible Double Bottom

Starbucks shares sold off after the 50-week 澳洲幸运5官方开奖结果体彩网:moving average (MA) crossed below the 200-week MA to generate a 澳洲幸运5官方开奖结果体彩网:death cross signal in late March. However, since bottoming out in early May, the price has carved out two distinct lows on above-average volume, potentially marking a 澳洲幸运5官方开奖结果体彩网:double bottom, a classic chart pattern that forms after a significant decline and indicates an ⛎upside trend reversal.

It's also worth pointing out that as the stock’s second trough made a slightly lower low, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) made a comparatively shallower low to create a 澳洲幸运5官方开奖结果体彩网:bullish divergence, a technical signal pointing to easing selling𝐆 momentum. Moreover, both lowsꦐ roughly align with a V-shaped trough that formed between May and June 2022, providing additional confirmation of a high probability reversal area.

Monitor These Key Overhead Resistance Levels

Lo💧oking ahead, investors should monitor four specific levels on the chart where the coffee chain’s shares could face overhead selling pressure if they continue higher.

Firstly, the stock could run into initial 澳洲幸运5官方开奖结果体彩网:resistance around $82, where it may encounter sellers near a 澳洲幸运5官方开奖结果体彩网:horizontal line linkin🐽g a series of important price points from March 2022 to June this year.

A close above this level could see the price move up to around $91, an area on the chart where sellers may be happy to 澳洲幸运5官方开奖结果体彩网:lock in profits near a multi-month trendline that currently aliജgns with the downward sloping 50-week MA.

Further upside could fuel a rally to the key $97 region, where a trendline linking the 200-week MA and a series of 澳洲幸运5官方开奖结果体彩网:price action between January 2021 and February this ♓year may𝄹 provide future resistance.

Finally, a more bullish move could see the shares revisit the $106 level, a location that sits in close proximity to a trendline connecting a range of 澳洲幸运5官方开奖结果体彩网:peaks and troughs dating all the way back to December 2020.

Starbucks shareᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚs were down 0.7% at $78.70 in recent pre♊market trading Monday.

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