January 21, 2010
Shares of Starbucks Corp (NASDAQ: SBUX) closed with a loss on Wednesday, January 20, but then rallied in after-hours trading after the coffee maker posted a better than expected earnings report.
In fact, Starbucks said that same store sales rose 4%, the first gain since the beginning of the recession and considerably greater than the 1.5% gain forecasted.
Starbucks reached the 50% retracement of its bear market decline in mid-December when it closed at $23.68. This is an important resistance level and shares have been unable to surpass it since.
But with today’s report, share prices jumped 3% as of the writing of this report and that is decisively above resistance, forecasting a run to the next resistance level up at $27.42, about 17.5% above Wednesday’s close.
Disclosure: The Fibtimer.com (www.fibtimer.com) Stock Timing Strategy holds a position in Starbucks.