Leading coffee shop operator, Starbucks Corp (SBUX), is declining by 3.6% after reporting earnings. The popular coffee stock missed on revenues and this seems to be putting pressure on the shares. The stock recently made a new all time high on April 19, 2021 at $118.98 a share. Today, SBUX stock is falling by $4.19 to $111.97 a share. The shares have now fallen below the 20-day moving average, but the stock remains in an up-trend on the larger time frames.
Traders should watch for daily chart support around the $108.00 area. This support level is where the stock based in February and March before breaking out to the recent high. This level should be defended by the institutional crowd when initially tested. Often, prior breakout levels will serve as solid support and should be good for a short term bounce play.
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