Looking at the technical picture of the Starbucks Corporation stock (NASDAQ: SBUX) on our daily chart, we can see that after a strong decline last week, the share price is now resting near one of its key support areas, at 113.13. At the same time, the stock is trading well below a short-term tentative downside resistance line drawn from the high of July 23rd. There is a decent chance to see SBUX moving further south, however, a break below that support area, at 113.13, is required.
If, eventually, that break happens and the share price moves below the 113.13 zone, this will confirm a forthcoming lower low, potentially opening the way towards the 111.27 hurdle. That hurdle marks the low of June 30th, where a temporary hold-up may occur. That said, if the buyers are still nowhere to be found, SBUX might continue with its journey south, possibly aiming for the 109.28 level, marked by the lowest point of June.
Despite pointing slightly higher, the RSI remains below 50. The MACD continues to aim slightly lower, while running below zero and its trigger line. The two oscillators indicate negative price momentum, which come in line with the idea discussed above.
Alternatively, if the stock is able to push back above the 114.88 barrier, marked by an intraday swing high of September 15th and the high of September 16th, that could invite a few extra buyers back into the game. This may help the share price go for a larger correction higher, where the next target could be at 116.74, a break of which might clear the path to the 118.37 area. That area marks the low of September 14th. Slightly above it runs the aforementioned downside line, which may provide additional resistance for SBUX.
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