Starbucks Corp (NASDAQ: SBUX) Breaks Support Dating To 1999 Says Market Timer Frank Kollar
January 3, 2008 (FinancialWire) (By Frank Kollar)
Shares of Starbucks Corp (NASDAQ: SBUX) have broken below support levels that date all the way back to 1999. The support, at $19.42, is the 61.8% retracement of the gains achieved since the 1999 lows.
Wednesday’s closing low at $19.31 breaks not only that major support, but also the short term support at $20 a share.
This forecasts lows that may reach $13.85 before the selling ends. Of course such lows will not be reached in the short term and there may be tradable rallies along the way, but anyone bullish on this stock should be extremely cautious.
A month ago we wrote, “No one can know how far down a stock will go until it has reached bottom and started back up. In Starbuck’s case, those who have held on now need almost a 100% gain just to break even. Ask holders of Nortel stock who rode it down from $90 a share to under $1.”
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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