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Starbucks (SBUX) shares will likely remain on watchlists Wednesday after surging 25% yesterday on news the company had appointed Chipotle Mexican Grill (CMG) CEO Brian Niccol as its new CEO, replacing Laxman Narasimhan, who had served in the role for just 17 months.

During Narasimhan’s tenure, the coffeehouse chain contended with a plethora of challenges including contracting sales, increasing competition in China and discerning spending from price-weary customers. That prompted activist investors to reportedly push for changes in a bid to boost the share price.

Below, we take a closer look at Starbucks’ chart and turn to technical analysis to identify important price levels likely to attract investors’ attention.

Starbucks shares forged a double bottom between May and July, a classic chart pattern that signals a reversal from a prior down move to a new uptrend. 

Indeed, the coffee chain’s news-driven pop on Tuesday confirmed the formation, with the stock gapping above the double bottom’s neckline and closely watched 200-day moving average. Crucially, the move occurred on trading volume of more than 150 million shares, the highest daily turnover in the stock since June 7, 2000, indicating active participation from larger maker players, such as institutional investors and hedge funds.

Despite the bullish technicals, the relative strength index (RSI) indicates overbought conditions, with a reading above the 70 threshold, increasing the chances for short-term profit-taking.

Amid the likelihood for further price fluctuations in Starbucks shares after Tuesday’s surge, investors should keep a close eye on several important support and resistance levels in upcoming trading sessions.

An initial pullback could see the price revisit $90, where it would likely attract buying interest around a horizontal line joining the prominent October swing low with an array of comparable trading levels between March and April. Interestingly, this location also aligns with the key 50% Fibonacci retracement level when applying a grid from the November high to the May low.

A deeper retracement may see the stock decline to the double bottom’s neckline around the $83 level, an area likely to attract support upon the price filling a gap between the April swing low and June swing high. 

The first higher level on the chart to monitor sits near $98, where the shares could run into overhead selling pressure from a trendline linking multiple peaks and troughs from March 2023 to February this year.

A more bullish upside move could test the $107.50 area, a region on the chart that may provide resistance around the November countertrend swing high that formed within the stock’s broader downtrend over the past 15 months.

Starbucks shares were down 0.3% at $95.60 in recent premarket trading.

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The Woman who tore her husband’s international passport at the Lagos airport has been arrested and flown to Abuja for questioning.

The woman has being invited for questioning by Nigerian Immigration service, after she tore the passport of her husband, after they arrived Nigeria because of the grievances she had against her husband.

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Economists expect that data to be released Thursday will show retail sales moved higher again in July. However, the post-pandemic spending spree may be close to an end.

Retail sales likely increased 0.3% in July versus the month before, according to economists surveyed by the and . That increase would follow better-than-expected figures the month before that showed consumers maintained their spending habits.

Strong retail sales have helped power the economy's unexpected growth, as shoppers spent their way past projections that the U.S. would fall into a recession last year. And so far in 2024, retail sales have remained generally robust, though some economists think a slowdown is coming. 

Weakness in the job market and the reliance of customers on credit has some economists asking if shoppers can sustain their spending habits.

“The lackluster pace of hiring in July, combined with other labor market indicators continuing to weaken, implies weaker income growth, which will eventually weigh on consumer spending,”  wrote Wells Fargo economists Tim Quinlan, Shannon Seery Grein and Jeremiah Kohl.

Auto sales likely boosted the overall retail sales figure in July, after a cyberattack disrupted sales in the prior month. Meanwhile, gasoline sales are expected to have declined for a third consecutive month, as gas prices have remained subdued through most of the summer.

Another factor driving sales could be Amazon's Prime Day, which happened in mid-July and often spurs competing sales. Adobe Analytics estimated that this year Americans spent more than $14.2 billion at online retailers during the two-day sale.

“Our forecast reflects a boost from another record Amazon Prime Day but sequentially slower credit card spending growth and a potential headwind from seasonality,” wrote Goldman Sachs analysts.

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Classy Jesters has inspired his fans and content creators as he bought himself a Brand NEW Mercedes Benz GLE Coupe worth over 170 Million Naira.

The Jester was seen parading himself with the exotic cars.

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Reality TV star, Kim Oprah has revealed that money does not stop you from traveling to your favorite destination.

She said doesn’t know who needs to hear this but money does not stop you from traveling to your favorite destination.

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