- Analytical Commentary -

March 11, 2010 (FinancialWire) (By Frank Kollar) — Shares of Starbucks Corp (NASDAQ: SBUX) broke out to new 2009 – 2010 highs on heavy volume Wednesday, March 10.

Starbucks gained 2.6% on Wednesday. There was no news that we were able to find, unless their refusal to bar people wearing guns in those states that allow people to carry them boosted the stock.

Or maybe it was the negative rating by David Trainer from New Constructs Inc., a Nashville-based stock research firm, who said Starbucks is “the antithesis of McDonald’s” and a “doomed business” that he would not own.

Regardless, Starbucks has broken out above $24 level that held it in check since mid-December 2009. That level was also the 50% retracement for Starbuck’s entire bear market decline.

The breakout, to $24.23 a share, points to higher highs and a likely move to the next resistance level up at $27.41 a share. This is the 61.8% retracement level. It is also an 18% gain from Wednesday’s close.

Disclaimer: The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy holds a position in Starbucks.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 and 2008 bear markets, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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