May 13, 2010
Yesterday we wrote that Starbucks Corp (NASDAQ: SBUX) broke out to new highs back on April 22, and since that date, with the exception of the two days affected by last week’s mini-crash, have held above $26.00 a share.
We also wrote that if Starbucks could close decisively above $27.42 it will be a new breakout. With strong support at $26.00 and a potential breakout at $27.42, Starbucks is a strong candidate for a bullish trade here with a stop just below $26.00.
On Wednesday May 12, Starbucks made that breakout rising well over 4% on heavy volume.
The new target for Starbucks is $32.95, the 78.6% retracement for the bear market declines. Though it is a bit early to look for, Starbucks may be headed for its old highs at $40.00 a share over coming months.
Disclosure: The Fibtimer.com (www.fibtimer.com) Stock Timing Strategy holds a position in Starbucks.