June 3, 2010
Shares of Starbucks Corp (NASDAQ: SBUX) rose 3.3% on Wednesday, June 2 as the stock market rallied across the board.
But unlike most stocks which have substantial correction losses to make up, Starbucks is only about 4% from its 2010 highs.
Those highs are also right at strong resistance, the 61.8% retracement level of the entire 2008-2009 bear market decline. A close above this resistance level, at $27.42 as well as a close above Starbuck’s prior highs at $27.85, would be a breakout for this widely followed and heavily traded stock.
If the breakout occurs, we are looking for Starbucks to reach our next target for this stock, at $32.95, in coming weeks.
Disclosure: The Fibtimer.com (www.fibtimer.com) Stock Timing Strategy holds a position in Starbucks.