Starbucks Is Near a Key Resistance Area
Published on Thursday, 07 February 2013 07:20 Written by TradersHuddle Wire
New York, February 7th (TradersHuddle.com) - Shares of Starbucks Corporation (NASDAQ:SBUX) are trading very close to calculated resistance at $57.10. The stock ended the trading session at just $56.05, which is near levels that make it difficult to buy or start a position.
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' stock range is defined by its calculated support defined at $49.56 and by the resistance level at $57.10; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for Starbucks. However, as the stock pulls back towards $49.56 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $57.10 then traders will get an opportunity to enter the stock as it moves to a higher range.