Beam Suggests Americans Have Stopped Drinking
- Posted by Greg Harmon
- on November 27th, 2012
Now until December 2nd, the Annual Membership can be had at a Special Fibonacci Discount to the Rolling Monthly Rate. 38.2% off or $667.44. Follow the link here.
I thought Americans loved alcohol and reality television. So what is going on with Beam Inc, $BEAM? They have all the Bethany Frankel Skinny Girl Cocktails, and mainstream and high end bourbons like Maker’s Mark and Knob Creek and their signature Jim Beam Bourbon. Yet their stock price has been in a downward channel since peaking in June. The chart below shows no signs of letting up with a Relative Strength Index (RSI) that is bearish and heading back lower and a moving Average Convergence Divergence indicator (MACD) that is crossing back to negative. These in
Beam Inc, $BEAM
fact support more downside. And despite the near 50% pullback of the upward move, the short interest is under 1%. This looks headed to test the 50% Fibonacci retracement at 52.33 and a move under that likely to try 49.57, the 61.8% retracement, before it is over. A break of the channel lower could signal real trouble in the stock. There is no indication of a bottom or any reason to buy this name. You have three choices. Short it outright using a $2 trailing stop. Short it against Diageo, $DEO, which has a fabulously bullish chart. Or walk away. No, Americans have not stopped drinking.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Macro Week in Review/Preview October 31, 2014
- The Opportunities in the Market the Last 2 Weeks
- How to Spot a Perma-Bear
- How Gold Miners Are Worse than Gold
- Starbucks Earnings Trade Ideas for Less Than a Pumpkin Spice Latte
- Premium Earnings 10-30-14
- How to Trade Baidu for the Earnings Report
- Premium Earnings 10-29-14
- SPYing Above the Treetops
- Earnings Trade Ideas for Facebook