Starbucks shares gain for a fourth straight session on Thursday, loyalty rewards program at stores expanded

According to a May 4th statement by Starbucks Corporation (SBUX), the retailers loyalty rewards program at grocery stores is to include a wider range of products in an attempt to lure more customers in the United States. The decision comes after a customer backlash, when the coffee chain reviewed its existing rewards program in 2016.

Starbucks shares closed higher for a fourth straight trading session on Thursday. The stock went up 0.40% ($0.24) to $60.83, after touching an intraday high at $60.85, or a price level not seen since April 27th ($61.94). In the week ended on April 30th the shares of the coffee chain lost 0.91% of their market value compared to a week ago, which marked the third drop in the past four weeks and also the worst performance since the week ended on March 12th. However, the stock has extended its advance to 1.28% so far during the current month, following a 2.86% surge in April. The latter has been a third consecutive month of gains. For the entire past year, the shares of the NASDAQ-listed retailer lost 7.51%.

Starbucks customers now earn 2 “stars” for each $1 they spend, while 125 stars are now required for a free-of-charge food or drink item. Thus, some customers would need to spend more in order to obtain free items. Previously, customers earned 1 star for every purchase they made, while 12 stars were required for an item.

Stars can now be earned on more than three times larger number of products available at grocery stores, including packaged roast & ground coffee, K-Cup packs and multi-serve chilled coffee.

According to CNN Money, the 28 analysts, offering 12-month forecasts regarding Starbucks Corporation’s stock price, have a median target of $65.00, with a high estimate of $71.00 and a low estimate of $54.00. The median estimate is a 6.86% surge compared to the closing price of $60.83 on May 4th.

The same media also reported that 22 out of 33 surveyed investment analysts had rated Starbucks Corporation’s stock as “Buy”, while 9 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Starbucks stock are presented as follows:

R1 – $60.87
R2 – $60.91
R3 (Range Resistance – Sell) – $60.96
R4 (Long Breakout) – $61.08
R5 (Breakout Target 1) – $61.23
R6 (Breakout Target 2) – $61.29

S1 – $60.79
S2 – $60.75
S3 (Range Support – Buy) – $60.70
S4 (Short Breakout) – $60.58
S5 (Breakout Target 1) – $60.43
S6 (Breakout Target 2) – $60.37

By using the traditional method of calculation, the weekly levels of importance for Starbucks Corporation (SBUX) are presented as follows:

Central Pivot Point – $60.33
R1 – $61.67
R2 – $63.28
R3 – $64.62
R4 – $65.96

S1 – $58.72
S2 – $57.38
S3 – $55.77
S4 – $54.16