Starbucks Reverses Downward Trend

I have been holding on to my positions in Starbucks (SBUX), patiently waiting for a bottom in the stock.

click to enlarge

Recently, the stock has started to find some support, and began bouncing around the $26 level, give or take.

On Wednesday, the stock started moving higher, and volume really picked up. That move accelerated on Wednesday when the stock gapped higher in the morning, and never looked back.

Volume accelerated again on Thursday, and the stock broke above its overhead 50-day average. This is a good sign, and an important first step in reversing the downtrend in which the stock has been mired for most of the year.

Disclosure: The author is long SBUX.

Comments

[Graig Stettner:]

That's it?!

2007 Jul 20 08:34 AM