Trading Idea: Is Starbucks close to Support?

New York, June 26th (TradersHuddle.com) - Shares of Starbucks Corporation (NASDAQ:SBUX) are trading very close to calculated support at $51.03 with price action closing at just $53.30 and placing the stock near levels where traders will start paying attention.Starbucks' stock range is defined by its calculated support defined at $51.03 and by the resistance level at $55.97, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Starbucks' price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $55.97 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Starbucks Corporation (NASDAQ:SBUX) retails, roasts, and provides its own brand of specialty coffee. The Company operates retail locations worldwide and sells whole bean coffees through several distribution channels. Starbucks also produces and sells bottled coffee drinks.