October 14, 2010
Shares of Starbucks Corp (NASDAQ: SBUX) rallied on Tuesday, October 12 following positive comments from Credit Suisse. Analysts there raised 2011 and 2012 estimates for the company while maintaining an outperform rating.
The one day rally pushed prices above the $26.20 resistance level which had held share prices from advancing since September 20.
Starbucks should have no difficulty surpassing its June closing high of $28.09. After this the path is wide open with no real resistance until the $35.00 to $40.00 levels reached in 2006, before the bear market that decimated this stock.
Starbucks needs a decisive close above $28.09 to be considered a breakout.
The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy holds a position in Starbucks.
Disclosure: The Fibtimer.com (www.fibtimer.com) Stock Timing Strategy holds a position in Starbucks.