Patience with Starbucks

Published on Monday, 30 August 2010 04:56 Written by Christian Paolinetti

New York, August 30th (TradersHuddle.com) - Shares of Starbucks Corporation (NASDAQ:SBUX) closed the trading session at $23.47 near its 200 day moving average currently set at $24.33. Starbucks' price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 200 day moving average.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $22.50 and calculated resistance at $25.72. These levels are being closely watched by traders, as they provide great reference points for the latest price dynamics in Starbucks shares.

Traders should evaluate their trade if they want to establish a position on Starbucks given the resistance expected as the stock approaches the 200 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.