Constellation Brands – October 18, 2017 …

Constellation Brands (STZ) has broken last week’s inside candle to the upside and I am looking at putting on a small positional trade to see how far this move can take us.  Maybe we only push higher into this week’s OpEx expiry or maybe we are seeing the resumption of a nice trend following the consolidation pattern put in after the great earnings beat on October 5th (+14% above estimates) that could end up lasting several weeks.  Here are the charts …

STZ – Weekly Chart

As noted … last week was an inside candle after the nice earnings beat.  There is no real reason that I can see on the chart indicators that would have me expecting this break higher to fail immediately, so the trick will be to enter at a point were price looks like it is accelerating intra-day to the upside.

STZ – Monthly Chart

Long-term traders that have used the trailing ATR on the monthly chart have had a nice winner coming out of the 2007/08 financial crisis.  I guess, people decided to keep drinking alcohol even when they lost a bit of cash in the markets.

STZ – Daily Chart

Volume and a break higher in the R/S indicator seem to imply that we are heading higher.

STZ – 195 Minute Chart

I’m going to try and enter this positional/swing trade in three stages over the remainder of this week and then see what happens.

Cheers … Leaf_West

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