Don't Ignore This Chart!

Monster Beverage Pours An Earning Boost $MNST


Monster (MNST) reported great numbers, beating on both earnings and revenue. What makes the chart valuable is that, after all is said and done, we can see that price is moving above the centre of the range. The real story here is that MNST has been flat money for the last 1.5 years. Also worth noting is the fact that the stock recently tried to break out, pulled back and has now relaunched.  

While some of the mainstream stocks have garnered all of the attention, the technology names have underperformed over the last few weeks and defensives have started to lead. 

We also saw this in September 2018:

While MNST pulled back in September 2018, I think the tone is changing here and defensive plays might hold up better as global growth continues to slow. I would wait for some sort of a 4-day pullback, subsequently looking to enter where I could control risk with a tight stop rather than trying to buy on a spike high. 

Good trading,
Greg Schnell, CMT, MFTA.

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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