Starbucks Corporation (NASDAQ: SBUX) has seen
better days. The stock was able to stay in an up
trend for three months prior to its recent drop. So what's the deal with
SBUX? That's a good question. They still dominate the coffee (aka black gold)
market, and they have announced continued expansion into the China market which
means they're still a growth story. Competition
is likely the culprit in this case. Regardless, let's take a look at the
technicals.
After trending up for a 3 month
period, SBUX broke the up trend but was able to pull back and
close above it. The next day it opened higher but quickly fell, traded sideways for most
of the day, and closed below
the trend line. That was Monday, and things got worse Tuesday and Wednesday.
SBUX entered into a down trend and seems to have fallen apart. There is support
at the 37.50 level, and the stock is currently trading at
37.56, so we'll have to see how it acts at 37.50.
Happy Trading,
Andy Swan
co-founder, DaytradeTeam
P.S. - Swing Trading is the art of capturing profits in trending stocks in a relatively short amount of time.
SwingTrades.com offers Swing & Day Trading Strategies for the full or part-time trader.
Ken Matsumato, who succesfully runs the Swingtrades, is one of the most consistently profitable traders, often recording gains month after month. As of now, he is averaging 36.02% profit per month with Day Trading and 10.77% with Swing Trading Systems!
» Go here to learn more...
|
[ 
Dan Zanger Offers 3 week FREE trial!
