Bud, Wassup!
To answer the question from the world-famous beer commercial, Bud was up.
It always makes sense to keep an eye on which sectors might be holding up
well on rough market days like we saw Wednesday as the Nasdaq fell 6%. As often
happens, the defensive stocks like food and beverage companies are often the
beneficiaries of money rotating out of tech and looking for a safe place to
hide. It’s even better when you find an area that already has some good patterns
under its belt.
So when I noticed Budweiser
(
BUD |
Quote |
Chart |
News |
PowerRating) holding up so well, the chart patterns
confirm the reasons behind its strength. Bud has been trending higher since
January along a support line and has moved back above its 50- and 200-day moving
averages. Bud traded up 1.40 to 46.46 on average volume as it moved to a
three-month high.
In addition, Bud found support in a longer-term trend channel, as you can see
in the chart below. So while tech remains under a lot of pressure, Bud has
obviously been a good place to weather the storm. Keep an eye out to see if Bud
can continue its rise on increasing volume.
See you Thursday,