- Starbucks Corporation (NASDAQ: SBUX) price declined by 13% in the last six months.
- SBUX stock has been recommended as a strong sell by the technical summary widget.
- Starbucks Corporation’s annual profit margin declined by nearly 4%.
The Starbucks Corporation, a globally renowned coffeehouse chain, is one of the most prominent brands worldwide. It was established in 1971 by Jerry Baldwin, who also serves as the CEO and co-founder, in collaboration with the Sieg brothers, Zev and Gordon. Over the years, the company has firmly positioned itself as a frontrunner in the coffee sector.
Trend Analysis of SBUX
The SBUX stock is currently displaying a bearish trend in the weekly timeframe, marked by the formation of lower lows. The current market price of SBUX stock is $491.35, with a trading volume of $6.9 Million. In July 2023, the stock reached a high of $126.31 but subsequently experienced a significant decline of over 45%, finding support around $71.4. Following this, the price rebounded by approximately 60%. However, this upward movement was short-lived, and the price resumed its decline, encountering resistance at the $114 level.
The price action of SBUX has formed a wedge pattern with a recent breakdown. This breakdown is viewed as a negative signal, and the overall structure of the stock appears bearish. Consequently, a further price decline is anticipated. Furthermore, the annual profit margin percentage of the stock has seen a decline. It was 14.45% in 2021 but decreased to 10.1% by the end of 2022. This declining profitability poses a challenge for the company.
Additionally, the technical indicator summary provides a strong “sell” signal for SBUX stock. Among the 26 indicators, 17 indicate a sell signal, while none suggest a buy signal. This data may erode investors’ confidence in the stock.
Starbucks Corporation (SBUX) Stock Price Analysis
The MACD line and the signal line for Starbucks Corporation are both positioned below the zero line. Furthermore, the MACD indicator displays a red histogram, suggesting a lack of strong momentum. These indications may be interpreted as potential signs of a bearish market sentiment. In the case of SBUX stock, the RSI line is trading below the signal line, and both lines are situated in the negative territory. This configuration implies a likelihood of price decline in the days ahead.
Notably, the trading volume of Starbucks Corporation stock exhibits a consistent decrease, indicating reduced market activity. This decline in volume reflects a waning interest from buyers which aligns with the expectation of a potential price decrease.
Conclusion
The SBUX stock is moving downwards. The volume of the stock has declined and the stock is recommended as a strong “sell” by the technical indicator summary widget. The overall structure of the stock is negative. Thus, the price is expected to decline in the upcoming days.
Technical Levels
- Support Levels: $89 and $82
- Resistance Levels: $104 and $114
Disclaimer
The views and opinions of the author, or anyone named in this article, are for informational purposes only. They do not offer financial, investment, or other advice. Investing or trading crypto assets involves the risk of financial loss.
