Starbucks Corp (NASDAQ: SBUX) Breaks Below Critical Support Says Market Timer Frank Kollar
November 7, 2006 (FinancialWire) (By Frank Kollar)
Shares of Starbucks Corp (NASDAQ: SBUX) sold off with the rest of the stock market on Wednesday, November 7th. But the sell off in Starbucks was a continuation of a decline that started all the way back in 2006.
A month ago we wrote: “Starbucks is not a stock for traders looking for bullish gains. Those who take short positions should be watching the $25.22 level. If Starbucks closes below this support level in coming weeks, we will be watching for declines to at least $24.30 in short order, and possibly to $23.13.”
Today’s declines stopped at $24.14, only a penny shy of our forecast.
But there is more bad news. Today’s close also broke below a major support level at $24.30. This forecasts continued declines, likely to at least $23.13 a share.
The coffee is great. The stock is not.
Fibtimer.com (http://www.fibtimer.com) currently has a position in Starbucks Corp in its Stock Timing Strategy.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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