Don't Ignore This Chart!

A Bottom May Be Brewing In BUD

 | 

The U.S. stock market has been flying high over the past month, but shares of Anheuser-Busch InBev (BUD) have fallen close to 30% since reaching an all-time high in late September.  Technically, there's hope that BUD is at or approaching a very significant bottom, however.  Let's take a look at a shorter-term daily chart and then a longer-term weekly chart:

Shorter-term:

Longer-term:

The daily chart now reflects a slowing of selling momentum, at least in terms of price action.  This slowing is also occurring at a key price support level near 100 on the longer-term weekly chart.  While it would be reasonable to assume that BUD is preparing to reverse at the current level, I'd be very cautious if the longer-term support level does not hold.  Why?  Because volume on this recent selling has been massive and weekly momentum is extremely bearish (red circles).

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus