Starbucks Moving Above Resistance

Published on Thursday, 02 September 2010 05:04 Written by Christian Paolinetti

New York, September 2nd (TradersHuddle.com) - Shares of Starbucks Corporation (NASDAQ:SBUX) closed the trading session at $23.68 just above calculated resistance at $23.64 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

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 was trading in a well defined range with support at $22.50 and resistance at $23.64, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Starbucks' stock is still near the broken resistance level, traders will be focusing on $23.64 to see if the stock holds the breakout without rolling over.