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After Hours Rally for Starbucks Corp (NASDAQ: SBUX)

|Includes: Starbucks Corporation (SBUX)

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 ( Stock Timing Strategy holds a position in Starbucks.