Starbucks Corp (NASDAQ: SBUX) Stuck At The Bottom Says Market Timer Frank Kollar
January 29, 2008 (FinancialWire) (By Frank Kollar)
Shares of Starbucks Corp (NASDAQ: SBUX) hit new correction lows last week at $18.00 a share. They have since rebounded a bit and closed Monday, January 28 th, at $19.66 a share.
Remember that Starbucks was at $40.00 before the decline in shares started back in 2006. It will take a gain of over 100% just to get back to those highs.
Having now lost over 50% of its share value, is the bottom in? We would not bet on it. Considering that $18.00 held on two attempts to cross below, if Starbucks does break that low, it would likely decline much further. That would be a good point for a short sale and a good buy stop after the trade is in place.
On the bullish side, Starbucks needs to close above $22.00 a share to break out of its downtrend. That is where we would consider long trades, with a stop of course.
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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