Here, hold my beer! Let’s check in on Coors Molson ($TAP) – July 13, 2022TAP
I want to talk about beer today. Molson Coors ( NYSE: TAP ), let’s look at the chart here. On the weekly chart here, you can’t really say this is a cup and handle, it’s pulling back 30 some percent. There are 10 cup and handles for everyone that actually does exist, everybody looks at them.
I wouldn’t look at this in that way. My sense is that it is just in this consolidation phase in the 50.00s, that’s really the way I look at it. If we look at it on the daily chart to see how we are going to trade it. I’ve looked at this before as far as when this was a buy point, but it is not exactly trending.
You could look at it this way and that way. I have seen this pattern before, where it is this widening formation, which tends to be more of a bearish thing. But then within that, you get some kind of consolidation at a high level. In other words, it doesn’t fall all the way back down to this declining support line. Instead, it forms a higher low, and then that gives it some impetus to spring higher to another leg. In other words, it can just keep on going.
Now, earnings aren’t until next month and so this kind of has a little bit to run. My suggestion would be because it is up 4 days in a row and up 6.5 percent over the last 4 days, which doesn’t seem a lot on a tech stock or something if it is rebounding. But on something like this, that’s a pretty big move.
What I would do; I talk about this a lot, drawing boxes. Look and see where the stock is now, draw 2 boxes, one above it using the lower left corner to tag the current price. And the one below it using the upper left corner to tag the price. And then the question you ask yourself is, what are the chances that this box gets even a little bit of action? Or is this going to pull back into the box at all? Or do I think this is just going to continue to run up? My suspicion is, that we will probably pull back a bit.
So I would suggest waiting on this but definitely keep an eye on it. If it pulls back say, to 57.00, that’s where this last resistance was, it has broken through now. But if it pulls back to 57.00 and firms up, that could be a time where it would be prudent to buy the stock. I just wouldn’t do it now but it definitely has my attention.