Starbucks Corp (SBUX) Is Struggling, Here’s The Trade

President & CEO Chief Market Strategist at IntheMoneyStocks.com • Oct 5, 2021 at 1:27 PM EDT

The next major support level for the stock will be around the $104.00 area. This important support level is where the stock broke out of a multi-month consolidation base in March 2021.

Leading coffee chain operator, Starbucks Corp (SBUX), has been under pressure since late July 2021. At that time, the stop topped out at $126.32 a share. Since that pivot high, the shares have been steadily declining and currently trade around $111.00 a share. Starbucks Corp (SBUX) has been consolidating along the 200-day moving average and this puts the stock in a weak technical position on the charts in the near term.

The next major support level for the stock will be around the $104.00 area. This important support level is where the stock broke out of a multi-month consolidation base in March 2021. Very often, leading stocks will be defended around prior breakout levels when they retest. I would look for a longside trade in Starbucks Corp (SBUX) at this key technical level.

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