Starbucks Broke Resistance
Published on Friday, 13 April 2012 08:36 Written by TradersHuddle Wire
New York, April 13th (TradersHuddle.com) - Shares of Starbucks Corporation (NASDAQ:SBUX) closed the session at $60.63 just above calculated resistance at $58.47. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.
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.
The stock was trading in a well defined range with support at $42.67 and resistance at $58.47. Given that this range was broken, traders will be closely monitoring Starbucks' price action to gather clues on the future direction.
From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Starbucks is still near the broken resistance level, traders will be focusing on the $58.47 level to see if the stock holds the breakout without rolling over.