STARBUCKS CORP. - Cracks forming on the bullish movement for Starbucks - 05/01/2023 (GMT)

Starbucks Corporation. (symbol ‘SBUX’) is trading at a profit of around 8% compared to the beginning of the first quarter of the year. The company’s earnings report for the fiscal quarter ending March 2023 is set to be released on Tuesday 2nd of May, after market close. The consensus EPS for the quarter is $0,64 compared to the same quarter last year of $0,69.  ‘ Despite insider selling from CFO (chief financial officer) and EVP (executive vice president) of shares totalling around $400,000 in February, accounting for less than half a percent (0.49%) reduction in stake ownership in the coffee giant, insiders holding decreased by a relatively small proportion- in line with the broader market selling trend.’ said Antreas Themistokleous at Exness.    From the technical analysis perspective the share has been consistently trading relatively well in the past 10 months with some technical indicators pointing to a possible correction in the short term. The price is approaching the strong reaction area of $110 which was a resistance level in October and December of 2021 as well as in early February of 2023. Even though the overall trend is still bullish there are some signs of weakness and possible correction to the downside in the coming sessions. 
  Firstly the Stochastic oscillator is in the extreme overbought area for the last 3 weeks and also the 50 SMA touching the 100 SMA is not giving any validation to the bullish narrative indicating that a downward correction is a possible scenario in the short term. If this is confirmed we might see some major support around the $103,50 price area which is the crossing of the 2 SMAs and also the 23.6% of the daily Fibonacci retracement level.