February 4, 2010
Shares of Starbucks Corp (NASDAQ: SBUX) reached an important resistance level at $24.00 on December 18, 2009. Starbucks has remained below this level into February.
The $24.00 level is the 50% retracement for the entire Starbucks’ decline in the 2008-2009 bear market. If Starbucks shares have a chance of moving higher in coming weeks, this level must be surpassed.
Starbucks has now declined to its 50-day moving average, closing on Wednesday, February 3 at $22.43. A close below the $22.00 level would likely result in lower lows. A close above $24.00 would take this stock to at least $27.40..
Disclosure: The Fibtimer.com (www.fibtimer.com) Stock Timing Strategy holds a position in Starbucks