Starbucks turnaround takes hold as AI cost cuts add new upsideStarbucks CorporationBATS:SBUXinkicho_exnessSBUX | 4H Technical Analysis — Jul 10, 2026 Bloomberg reported that Starbucks is developing proprietary AI tools to replace third-party software, including Microsoft's inventory management and IBM's maintenance programs, with CTO Ananth Baradwaj citing a clear opportunity to reduce the company's ~$400M annual software spend. Starbucks posted its first YoY growth in both revenue and earnings in two years in Q2 FY2026, with global same-store sales up 6% and North America comps rising more than 7%. Customer visit frequency hit a 3-year high, driven by the 'Green Apron Service' model rollout focused on staffing, service speed, and customer experience, with mobile order pickup also introduced to improve throughput and satisfaction scores. SBUX has been in a broad recovery since the March lows near 85, advancing steadily through 90, 100, and 109 before a sharp May flush took the price down to the 93 area. The recovery from that low has been swift and sustained, reclaiming 100 and 103 in sequence. Price is currently trading around 106.50, with EMA21 (103.56) and EMA78 (101.82) in a fresh bullish cross and both EMAs trending higher. The 93.70 zone held as a key support pivot during the June consolidation, providing the base for the current advance. Price has now pushed back toward the 109 level, which marked the prior cycle high and represents the next meaningful resistance. RSI at 62.43 is elevated but below overbought territory, providing room for a continued push without immediate exhaustion risk. Key levels to watch: Resistance: 109 / 102 / 117.50 (2025 Mar High) Support: 103 (EMA21) / 101.82 (EMA78) / 100 / 93.70 Bear case: Rejection at 109 and a rollover below EMA21 at 103 would suggest the recovery is stalling at the prior high. A close below EMA78 and 100 would shift the structure back to neutral, with 93.70 as the next meaningful support. Bull case: A clean break and hold above 109 on volume would confirm a new leg higher, with the operational turnaround, AI cost-reduction narrative, and bullish EMA cross all providing structural support. Follow-through targets 102 and the broader 117.50 reference level. Bias is bullish — the EMA cross is fresh, RSI has room to run, and the 93.70 base held cleanly during the June consolidation. A breakout above 109 would mark a full structural recovery from the May flush.