Techie Tuesdays: Starbucks
This is the second edition of Techie Tuesdays!
Take a look at this link for SBUX chart.
SBUX recently touched the higher band and promptly retreated. At the current price, SBUX sits above the moving average and about 50 cents shy of the upper band. The distance between the bands is relatively large, indicating substantial volatility.
Looks like the bands offer no clear cut recommendation but, if you had been following the bands using either rule from wiki you should have sold. If you followed the first rule, you would have sold once it crossed the moving average. If you followed the second rule, you would have sold a few days ago when the stock touched the upper band.
TST Bollinger Recommendation: SELL
The Bollinger Bands typically use 20-day periods which many argue as too short to tell anything significant. So for a short-term play, this may be a relevant conclusion. I do not recommend using any of the technical analysis tools I highlight in isolation.
And since I like SBUX so much (and prefer to opt for long term investments) I respectfully disagree :)
Tags: bollinger bankds, recommendations, starbucks, technical analysisRelated Stories
POSTED IN: Corporate, Investment, Market, News, Uncategorized
2 opinions for Techie Tuesdays: Starbucks
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Dec 2, 2008 at 2:26 pm
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Dec 16, 2008 at 2:57 pm
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