Starbucks Stock Surges 3.08% as Bullish Candlestick Pattern Emerges, Targeting $89.42 Resistance

Starbucks (SBUX) Technical Analysis
Candlestick Theory
The recent 3.08% rally in Starbucks’ stock has formed a bullish candlestick pattern, with the price closing near its intraday high of $87.25. This suggests strong buying pressure, particularly as the candle’s body extends above key psychological levels. Key support levels are evident at $83.02–$83.97, where the stock previously found a floor during late December–early January selloffs. Resistance is forming at $87.25–$89.42, corresponding to the high of the most recent session and prior peaks in mid-December. A break above $87.25 may target $89.42, while a retest of $83.02 could validate its role as a short-term support zone.
Moving Average Theory
Short-term momentum appears aligned with the 50-day moving average (likely above $85.50 as of early January), while the 200-day MA (around $89.00) remains a critical long-term reference. The price’s current position above the 50-day MA but below the 200-day MA suggests a mixed trend: bullish in the near term but with lingering bearish pressure from longer-term averages. A sustained close above the 200-day MA would signal a potential shift in trend, but this requires confirmation from volume and momentum indicators.
MACD & KDJ Indicators
The MACD histogram has expanded positively, indicating strengthening upward momentum, while the MACD line crossing above the signal line on the most recent rally confirms a bullish bias. The KDJ stochastic oscillator, however, shows overbought conditions (with %K approaching 80), suggesting caution about near-term exhaustion. Divergence between the MACD and KDJ—such as a flattening MACD line amid declining RSI—may hint at a potential pullback before the next leg higher.
Bollinger Bands
Volatility has spiked as the price reached the upper Bollinger Band ($87.25), a common precursor to consolidation or a reversal. The bands’ recent expansion following a period of contraction (mid-December) suggests a breakout phase. If the price retreats below the 20-day moving average, the lower band ($83.50–$84.00) could become a key area to watch for a bounce or further correction.
Volume-Price Relationship
The recent 3.08% gain was accompanied by elevated volume (9.89 million shares), validating the move’s strength. However, volume has been inconsistent during prior rallies (e.g., the mid-December 4.94% gain saw 16.47 million shares traded). Sustained volume above 10 million shares during up days would reinforce the bullish case, while declining volume on follow-through rallies could signal weakening conviction.
Relative Strength Index (RSI)
The RSI has entered overbought territory (>70), reflecting the recent sharp rally. While this may not immediately trigger a reversal—given the stock’s strong fundamentals and technical setup—it raises the risk of a short-term pullback. A drop below 50 would suggest fading the rally, but a rebound above 60 could indicate resilience in the uptrend.
Fibonacci Retracement
Key Fibonacci levels derived from the December 2025 low ($81.97) to the January 2026 high ($90.58) include 50% at $86.28 and 61.8% at $84.33. The current price near $86.56 is approaching the 50% retracement level, which may act as a pivot point. A break above $86.28 could target $89.42 (the prior peak), while a failure to hold this level may trigger a test of the 61.8% retracement at $84.33.
Confluence and Divergences
The most compelling confluence occurs at $86.28, where the 50% Fibonacci retracement aligns with the 50-day MA. A successful hold above this level would strengthen the case for a continuation of the uptrend. Conversely, a breakdown below $83.02 (a prior support zone) would invalidate the bullish case. Divergence between the MACD and RSI—such as a flattening MACD line amid declining RSI—may hint at near-term weakness, but the overall trend remains intact for now.