Starbucks stock price is facing an intense downtrend as it closed to its lowest level since October 2022, on Friday. This translated into a 4.97% weekly plunge for the shares of the American multinational coffee giant. The downtrend comes at a time when the benchmark S&P 500 index hovers at its highest level in history.

On Monday, shares of Starbucks Corporation were trading 0.32% lower than their last weekly close. The stock price is down 19.3% since its November 2023 peak. Technical analysis points toward more downside in the coming days.

Starbucks To Release Q1 Earnings On 25^th April

Starbucks is set to release the financial results for the first quarter of 2024 later this month. A sharp sell-off ahead of the earnings release indicates that the market participants are not expecting the company to beat the current analyst estimates.

The ongoing downtrend in Starbucks stock can be linked to the soaring robusta coffee prices, which have hit an all-time high of $3,745. This is more than a three-fold increase from the 2021 price of $1,176.

Wells Fargo Maintains Bullish Outlook On SBUX

The American financial services firm Wells Fargo maintains its overweight rating on NASDAQ: SBUX. The Wall Street investment giant has a $105 price target for the stock, which is about 21% upside from the current stock price of $86.76. For a deeper understanding of the price action, let's analyze the daily chart.

Starbucks Stock Price Outlook And Latest Analysis

It is evident from the following chart that SBUX is gravitating toward the $81.5-$83 demand zone after piercing through its $90 support. Due to this breakdown, the $90 level may now act as a resistance.

Another confluence for the bearish Starbucks stock price forecast is the upward trendline, which is very close to the demand zone. A retest of this trendline looks almost imminent now, as there is no major support before $83.