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.
PFE - Pfizer – Shares of the world's largest research-based biomedical and pharmaceutical company bounced off the $15.00 resistance level and are now heading to challenge the lows set up last February at $11.70 adding more weight to the bearish evidence. Since the June 05 peak was reached at $29.20 shares started a two and half year sideways trading defined by a pattern of higher lows and lower highs which finally resolved to the downside with the triple bottom breakout at $22.00 at the end of February 08. A sharp decline unveiled and prices plunged more than 20% at $17.20 before a short term pull back bounced off resistance at $20.10 with a double top pattern. Down trend resumed officially with the double bottom breakout at $18.80 taking the bearish run to bottom out at $11.70. Prices recovered thanks to a pattern of double top breakouts reaching $14.90 but failing to breach the solid resistance level and developing just recently a pattern of lower highs. From a technical perspective the bearish trend is justified to continue. Long positions should not be opened until a convincing break of the major long term resistance line will reverse the main trend. On the downside close out all longs at the triple bottom breakout at $13.40 with a projected downside target at $10.70.
JBT - John Bean Technologies Corporation - Provider of global technology solutions to high-value segments of the food processing and air transportation industries, John Bean Technologies Corporation (JBT) Point & Figure chart shows a recent triple bottom breakout pattern at $10.50 that might develop into further contraction leading to test again the main bullish support line. Although a negative Relative Strength Vs the market might foresee some short term underperformance the trend retains its long term bullish bias and holds some interesting upward perspectives. After a collapsing market introduction which saw shares losing more than half of its market value to $5.90 in just two months, a “Low Pole” pattern developed projecting an upside target to $13.10. The following recovery has been defined by upward moves followed by some sideways consolidation until the main bearish resistance line breakout at $10.00 inverted the trend outlook from bearish to bullish. A sudden decline to $8.90 successfully tested the main bullish support line strength developing another “Low Pole” pattern with a projected target at $16.40 which has been just recently activated. Long positions should be taken at the double top breakout at $11.70 with first target at $13.10 and then at $16.40. On the downside lighten at the double bottom breakout at $10.20 and close out all longs at the main support line breakout with a target at $7.70.
Fabio Verdelli (CMT) is equity technical analyst at MV Portfolio Advisors. He has analyzed commodities and financial markets using technical analysis since 1998 and implemented technical analysis to develop trade ideas and assess risk. He is an expert on Point & Figure charting method and is currently publishing analysis on “Trend-online” financial website and Yahoo Finance Italy.Verdelli is a member of the Market Technician Association (MTA) and a member of the nominating committee within the MTA
MV Portfolio Advisors offers capital investment and risk management consulting. The firm provides equity research reports based on technical analysis featuring investment opportunities arising in the marketplace to help portfolio managers making timely trades.