Starbucks shares under pressure: legal risks and key price levels

Management may face a lawsuit related to alleged manipulation of financial reporting published in the spring of 2024, when — contrary to forecasts and investor expectations of positive momentum — the company recorded a significant decline in sales in its ключевых markets in the United States and China. Seattle District Court Judge John Chun stated that shareholders could prove they were intentionally misled by statements about equipment modernization and the absence of material risks that could negatively impact performance. According to experts, on May 1, 2024, shareholders of the issuer lost around $16.0 billion following a sharp drop in Starbucks Corp. shares.

According to the company’s third-quarter financial results, revenue amounted to $9.57 billion compared with $9.50 billion in the previous period and $9.07 billion a year earlier, while earnings per share came in at $0.52 versus $0.50 and $0.80, respectively.

Support and resistance levels

On the daily chart, the price is trading in a corrective downward trend, remaining above the channel resistance line with dynamic boundaries at 84.00–73.00.

Technical indicators maintain a buy signal: the EMA range in the Alligator indicator remains narrow, while the AO histogram is forming new corrective bars in the buy zone.

Support levels: 83.20, 77.10.

Resistance levels: 89.10, 97.00.

Trading scenarios and Starbucks price outlook

If the upward movement continues and the price holds above the 89.10 resistance level, buy positions may become relevant with a target at 97.00. Stop-loss — 87.00. Expected timeframe: 7 days or more.

If the decline continues and the price holds below the local low at 83.20, sell positions may become relevant with a target at 77.10. Stop-loss — 85.00.