Beer, Champagne and Mixed Drinks: New Years Eve Trade

• Posted by Greg Harmon
• on December 29th, 2011

As we prepare for our New Year’s Eve celebrations, be they a quiet night at home on the couch watching the ball drop in Times Square or a wild Night in the Ballroom at the W Hotel, the one thing they all have in common is alcohol. And on queue three of the biggest producers and distributors making your New Year’s Eve festive are breaking higher. I am talking about Diageo, $DEO, and Constellation Brands $STZ, for you wild partiers and Anheuser-Busch InBev, $BUD, for the home gamers. Lets take a look.

Anheuser-Busch InBev, $BUD

Anheuser-Busch InBev, $BUD, broke above resistance at 61 Thursday triggering a bullish Inverse Head and Shoulders with a price target of at least 73.00. The Relative Strength Index (RSI) is bullish and rising while the Moving Average Convergence Divergence (MACD) indicator has turned positive and is increasing. Both support more upside. Once through the previous high of 64.53 there is nothing but clear air to the target.

Diageo, $DEO

Diageo, $DEO, reversed a move lower Wednesday to close at an new high only 2 cents below the intraday all time high level. And it looks good for more. The RSI broke into bullish territory over 60 and is rising and the MACD has been trending higher and crossed positive. It also has all of the Simple Moving Averages (SMA) sloping up. The next stop is the Measured Move to 90.

Constellation Brands $STZ

Constellation Brands $STZ, is the odd cold duck of the lot but still has a good chart. After hitting the resistance at 21 Tuesday it pulled back Wednesday only to recover some of that fall Thursday. If it can get over 21 then it has a Measured Move to 21.80 followed by the Spring high at 23. Above is area not seen since 2008. The RSI bumped lower off of the 70 level but held and turned back up Thursday, while the MACD which has been positive recently stalled but ticked higher Thursday. Wait for a break of 21.

I posted a few other bullish charts on chart.ly for Boston Beer ($SAM) which we killed last week, Molson Coors Brewing ($TAP) and Companhia de Bebidas Das Americas(AMBEV) ($ABV). Check them out

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