Bears Appeared - Starbucks

Published on Thursday, 29 July 2010 08:21 Written by TradersHuddle Staff

New York, July 29th (TradersHuddle.com) - Shares of Starbucks Corporation (NASDAQ:SBUX) ended the trading session lower by $0.19 or -0.75% from its previous close. Starbucks' price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Starbucks Corporation (NASDAQ:SBUX) retails, roasts, and provides its own brand of specialty coffee. The Company operates retail locations worldwide and sells whole bean coffees through several distribution channels. Starbucks also produces and sells bottled coffee drinks.

Starbucks' current stock range is defined by calculated support defined at $24.35 and by the resistance level at $26.44, which should be used by traders planning their trades.

Traders wanting to establish a position in Starbucks stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Starbucks shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: