Starbucks Corp (SBUX) at Important Support and Resistance Levels
11/06/2009 12:01 am EST
Shares of Starbucks Corp (SBUX) are between important support and resistance levels that will determine their course for the weeks ahead.
Starbucks has resistance at the $20.00 level, where the current declines picked up downside momentum. Starbucks also has strong support at $18.74, the closing lows for this correction. The $18.74 support is critical because it is where a rising trend line support in place since the March lows has stopped the recent losses.
Starbucks will move above or below one of these in the coming days, and the move is likely to determine the course of shares for several weeks at least.
A close above $20.00 should propel shares to a test, and possible breakout, of the prior 2009 highs at $20.94.
A close below $18.74 would likely doom shares to a test of the next support level down at $16.93.
By Frank Kollar of FibTimer.com
Frank Kollar is the owner of The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy. He holds a position in Starbucks.