Fuelled by a surprisingly positive earnings report in January, the SBUX has rallied into a double bottom neckline at approximately $114.48 to $115.30. This rejection comes with no weekly bearish divergence, but there is a daily bearish divergence.

Fading the neckline here to trade towards the lows at approximately $68.20-$75.46 is a possible play here, but would be a risky one. Multiple key supports below have formed since 2024, offering several bounce points for the asset.

The closest support lies between $104.33-$107.84, a prior resistance that has now been overcome. A long position could be considered in this area if the price holds, and SBUX consolidates.

The most critical zone to watch would be between $100.16-$102.80, where a bullish market gap lies, and aligns with the 50% Fibonacci level at $102.26. If the price dips slightly below, the 61.80% Fib support would come in at $98.68.

All in all, SBUX is forming a bullish reversal pattern, but keep an eye on support levels within the range for now. A rejection assisted by a daily bearish divergence could mean SBUX needs to consolidate further before a true breakout.

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