Trading Idea - Is Starbucks close to Support?

Published on Wednesday, 28 July 2010 02:12 Written by Danny Miller

New York, July 28th (TradersHuddle.com) - Shares of Starbucks Corporation (NASDAQ:SBUX) are trading very close to calculated support at $24.35 with current price action closing at just $25.18 places the stock price near levels where traders will start paying attention.

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 current 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 should place close attention to Starbucks' price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $26.44 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.