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
STZ – 195 Minute Chart
Cheers … Leaf_West