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开奖号码历史查询: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开奖号码历史查询:technical analysis 𓄧to identify important price 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开奖号码历史查询:moving average (MA) crossed below the 200-week MA to generate a 澳洲幸运5开奖号码历史查询: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开奖号码历史查询:double bottom, a classic chart pattern that forms after a significant decline💙 and i🌌ndicates 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开奖号码历史查询:relative strength index (RSI) made a comparatively shallower low to create a 澳洲幸运5开奖号码历史查询:bullish divergence, a technical signal pointing to easing selling momentum. 🔥Moreover, both lows roughly align with a V-shaped trough that formed between May and June 2022, providing additional confirmatiཧon of a high probability reversal area.

Monitor These Key Overhead Resistance Levels

Loo✤king ahead, investors should monitor four specific levels on the chart where the coffee chain’s shares could face overhead selling pressure if they continu🥀e higher.

Firstly, the stock could run into initial 澳洲幸运5开奖号码历史查询:resistance around $82, where it may encounter sellers near a 澳洲幸运5开奖号码历史查询:horizontal line linking a series of important price points from March 20𒅌2💖2 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开奖号码历史查询:lock in profits near a multi♔-month trendline that currently aligns 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开奖号码历史查询:price action between January 2021 and February this year ma🀅y 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开奖号码历史查询:peaks and troughs dating all the way back to December 2020.

Starbucks shares were down 0.7% at $78.7🏅0 in recent premarket trading Monday.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5开奖号码历史查询:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.