📖Starbucks has doubled the amount of its stores worldwide between 2010 and 2020, a CAGR of near 7%. The company is almost ubiquitous around the globe with more than 18,000 stores in the U.S. and 14,000 in the rest of the world. Euromonitor expects the addressable market for coffee to grow at a rate of 5% to 6% per year, hitting $450 billion of revenue globally by 2023. This anticipated rise in coffee consumption is a tailwind for Starbucks and will provide it with opportunities to increase its market share. Starbucks plans to grow to 55,000 stores across 100 markets by fiscal year 2030. Starbucks median price forecast by analyst is $112, which is +13% at the time of writing.
📈 Some more long term price action I want to talk about first; looking at the Fib extensions using June 2018 lows and July 2019 highs, price has recently failed to break the -0.13 Fib extension at $106 on 4th Jan 2021. When price fails to close above the -0.13 Fib extension, this signifies price is exhausted and will often retrace. Price is down 8% since failing to break the -0.13 Fib extension. This swing may see price retest that level and close above it. Price has recently closed above some resistance turned support. It has also bounced off the support line of the bullish price channel. It has also completed a 0.5 Fib retracement form its Oct swing low and Dec swing high, this area is marked by the blue rectangle. There is also some hidden continuation divergence in the RSI, with the price making higher lows, but the RSI making lower lows. Price looks primed to move higher, towards the top of the price channel.
🔎This is not financial advice. Always do your own research and due diligence. Always wait for directional confirmation before entering a trade.
📈 Some more long term price action I want to talk about first; looking at the Fib extensions using June 2018 lows and July 2019 highs, price has recently failed to break the -0.13 Fib extension at $106 on 4th Jan 2021. When price fails to close above the -0.13 Fib extension, this signifies price is exhausted and will often retrace. Price is down 8% since failing to break the -0.13 Fib extension. This swing may see price retest that level and close above it. Price has recently closed above some resistance turned support. It has also bounced off the support line of the bullish price channel. It has also completed a 0.5 Fib retracement form its Oct swing low and Dec swing high, this area is marked by the blue rectangle. There is also some hidden continuation divergence in the RSI, with the price making higher lows, but the RSI making lower lows. Price looks primed to move higher, towards the top of the price channel.
🔎This is not financial advice. Always do your own research and due diligence. Always wait for directional confirmation before entering a trade.