Wednesday, October 7, 2009

SBUX...again ?

I notice that SBUX is forming a continuation pattern. The pattern is called ascending triangle. The stock price creating higher low, and one resistance area of last highs.



For uptrend stock like SBUX, this pattern is a good setup for long play. If the price break the resistance of $20.94, we can buy the stock or call option Nov09 strike 21 or 22.
If breakout, the target price is about $25-26. Quite a good reward.

Hopefully the earning season will be good so market can support breakout plays.

Best regards

Snip

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