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JimVanMeerten (62.86)

How to play Starbucks

Recs

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November 28, 2011 – Comments (0) | RELATED TICKERS: SBUX

COMPLETE ARTICLE AND MORE GRAPHS


Stock picking is an important part of making money in the market but stock picking without good portfolio management will lose you a bundle.  Starbucks (SBUX) is a company that is on almost everyones' watch list but let's look on why it's a good stock and how we should play it.  Right now the stock is in a little bit of recovery along with the rest of the market.  As this graph provided byBarchart shows the stock currently is below its 20 day moving average but above its 50 and 100 day moving averages:



Barchart technical indicators:
1  - Barchart uses various technical price momentum indicators from 7 day to 6 months to analyze the current direction of a stock's price momentum

2 - At the present time sell indicators are weakening and buy indicators are strengthening

3 - 16% Barchart overall technical buy signal - strengthening

4 - Trend Spotter hold but this might become a buy near 44

5 - The stock is only 5.57% off its 1 year high

6 - The stock is below its 20 day moving average but above its 50 and 100 day moving averages

7 - The Relative Strength Index is 50.67%

8 - Barchart computes a technical support level at 40.95Recently traded at 42.22 with a 50 day moving average of 41.22


Summary: With Starbucks (SBUX) looking to have double digit increase of sales and earnings it is definitely a stock to be picked.  The way to play the stock is to buy when its trades above its 20 day moving average and use the 14 day turtle channel or 50 day moving average as a stop loss. At the moment the stock is trading at 41.86 with a 20 day moving average of 42.64 and the lower 14 day turtle channel at 40.75.  Keep your powder dry and look to get in now:

Jim Van Meerten is a Marketocracy Master

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