Technical Analysis of Financial Markets

Friday, July 28, 2006

Starbucks Corp. (SBUX)

Since breaking the 10-month uptrend in early July at $36, SBUX seems to be trading between the 200-day moving average and 50-day moving average; or $33 and $36. A break of the current support at $33 should see next support at $32 filling a gap along the way. A failure of the $32 support level may see price action consolidate at around $30. Not bullish until break above $37 filling a gap along the way and climbing back above the 10-month uptrend. Declining OBV suggests smart money is offloading.

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