March 11, 2010
Shares of Starbucks Corp (NASDAQ: SBUX) broke out to new 2009 - 2010 highs on heavy volume Wednesday, March 10.
Starbucks gained 2.6% on Wednesday. There was no news that we were able to find, unless their refusal to bar people wearing guns in those states that allow people to carry them boosted the stock.
Or maybe it was the negative rating by David Trainer from New Constructs Inc., a Nashville-based stock research firm, who said Starbucks is “the antithesis of McDonald's” and a "doomed business" that he would not own.
Regardless, Starbucks has broken out above $24 level that held it in check since mid-December 2009. That level was also the 50% retracement for Starbuck’s entire bear market decline.
The breakout, to $24.23 a share, points to higher highs and a likely move to the next resistance level up at $27.41 a share. This is the 61.8% retracement level. It is also an 18% gain from Wednesday’s close.
Disclosure: The Fibtimer.com (www.fibtimer.com) Stock Timing Strategy holds a position in Starbucks.