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SBUX – Starbucks Corporation - The world's leading retailer, roaster and brand of specialty coffee, Starbucks Corporation (SBUX), is struggling to penetrate the intermediate bearish trend line after the “Long Tail Up” pattern won back some ground. The trend retains his distinctive bearish outlook since the “Long Tail Down” broke the main long term bullish support line in October 05 at $47.10. An unopposed contraction started leading prices to reach $26.90 in a breathless downhill until an oversold condition spawned a strong reaction to the $40.00 level. Prices started trading in a wide sideways range with base at $28.80 and reaching again the $40.00 resistance failing to breakthrough. The double bottom breakout at $28.80 in May 07 opened wide to a resumption of the decline which did not find any buying power strong enough to reverse the unrelenting erosion that lasted until November 08 when finally solid support was found at 7.10. The “Low Pole” pattern generated by the final sell off and the subsequent recovery, projected an upside target in area $12.50 which was met last week of March 09 with an amazing accuracy. Shares are now pausing along the intermediate bearish trend line after a couple of unsuccessful attempt to penetrate it. Further breakthrough failures might end up causing prices to retrace again. A negative Relative Strength vs the market calls still for an underperforming future. Long positions should not be opened until breaking of the main bearish resistance line, with first upside target in area $19.90. On the downside close all long positions at the double bottom breakout at $10.70 with downside target at $7.90.
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