Starbucks SBUX head and shoulders top in place

See chart.

See the price of coffee KC1! has doubled this year: from just over 11/LB to over 2/lb.

Note: Retailers are weak. Economy is flat. People spent their money on home heating oil and high energy costs and have been cutting back on discretionary coffee purchases. Perhaps the K-Cup is eating into SBUX business. $1 at home instead of $5 out at the local Starbucks.

Technically, the last rally should have taken out any weak shorts and it maintains a nice downward trend with a very visible "level of maximum supply" at 77 that I have labeled. You can see that over 20 days of trading action have occurred at that price and it represents supply or "breakeven- itis" selling that can take place. Those who bought there are happy to exit at breakeven.

Good trading to you.

Tim 2:34PM EST, 3/13/14