How High Can Starbucks SBUX Go? New Video

Aug 14, 2009: 1:08 PM CST

Adam Hewison of Market Club released a new video this afternoon entitled “Do You Have Time for Coffee?” or more seriously titled “How High Can Starbucks Go” in reference to a comparison between Starbucks and McDonalds new ‘lower priced’ coffee blitz. How will it affect Starbucks, which is well known for selling higher priced morning coffee?

(Image links to video)

Adam highlights the longer term picture (as seen above) in Starbucks (it’s not pretty – prices fell from a 2006 high shy of $40 to an October 2008 low of $7.oo per share) and then describes key Fibonacci retracement levels to watch closely over the coming weeks and months.

For example, he notes that price has already retraced to the 38.2% level and then gives prices for each higher Fibonacci price level.

He also shows the current Monthly and Weekly “Trade Triangle” Signals (which are available to members) and notes the current signal (which was a monthly buy-trigger as seen at the $11 price level above just before April 2009).

In introducing the analysis video, Hewison writes:

“It has been sometime since we last looked at this market which has had a remarkable move from its lows.

So how high can Starbucks (SBUX) go given the current economy and the competition from McDonalds (MCD) and Dunkin’ Donuts (Privately Owned)?

In this short video I will point out some key levels that I believe will present problems for this iconic coffeemaker.

There is no need to register for this video and of course you can watch it with my compliments.  Now go grab a cup of coffee and watch this video!”

Thank you to Adam and staff for making these quick videos available to us!

Corey Rosenbloom, CMT

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