Key Takeaways

Starbucks ( SBUX ) shares tumbled on Wednesday after the coffee chain posted fiscal second-quarter results that fell short of analysts’ expectations .

The company said that global same store sales fell 1% in the quarter, a bigger drop than Wall Street anticipated. CEO Brian Niccol, who assumed the role last September and has launched a major turnaround effort, characterized the results as "disappointing" in a conference call late Tuesday.

In addition to managing strategic changes , the coffee giant faces external challenges such softening consumer spending and a potential rise in the price of coffee beans amid uncertainty surrounding sweeping tariffs imposed by the Trump administration.

Starbucks shares were down nearly 7% at around $79 in afternoon trading, after dropping as low as $75.50 early in the session. The stock is down about 13% since the start of the year, and has lost a third of its value since hitting a 52-week high in early March.

Below, we break down the technicals on Starbucks’ chart and identify major price levels that investors may be watching.

Symmetrical Triangle Breakdown

After falling decisively below the 200-day moving average (MA) earlier this month, Starbucks shares consolidated within a symmetrical triangle to signal indecision among market participants ahead of the company’s quarterly earnings. However, the stock broke down below the pattern's bottom trendline early Wednesday, setting the stage for a potential continuation move lower.

It’s also worth noting that the 50-day MA has converged toward the 200-day MA throughout April to signal a looming death cross —a bearish chart pattern that indicates lower prices ahead.

Let’s identify two major support levels where Starbucks shares could attract buying interest and also locate important overhead areas worth monitoring during potential recovery efforts.

Major Support Levels to Watch

The first level to watch sits around $77. Investors may seek entry points in this location near the April low, which also closely aligns with a brief consolidation period that preceded a significant breakaway gap on the chart last August.

Selling below this level could see Starbucks shares revisit lower support at $72. This area on the chart may attract buying interest near last year’s prominent May and July swing lows . The location also sits in the vicinity of a measured move price target that calculates the width of the symmetrical triangle and deducts that amount from the pattern’s lower trendline.

Important Overhead Areas Worth Monitoring

During potential recovery efforts, investors should keep a close eye on the $91 area. Tactical traders could place sell orders in this region near the opening price of last August’s breakaway gap which lines up with the low of a retracement the following month.

Finally, a more significant bullish reversal could see Starbucks shares test resistance at $99. This area may provide overhead selling pressure near a horizontal line that links a series of peaks on the chart between last August and early April.

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