Market Gyrates Yet BUD Falls

• Posted by Greg Harmon
• on October 9th, 2014

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The markets are gyrating more than Miley Cyrus at the Grammy’s. Volatility everywhere whether it shows up in the Volatility index or not. This is a time when many nerves are in tatters, especially among traders. At times like these they have been know to spend a little more time at the local watering hole. So you might expect that the stock of the King of Beers would be cruising higher. You would be sadly mistaken.

Anheuser-Busch Inbev, $BUD, had been on a strong run higher throughout 2013 and the first 6 months of 2014. But since then it has stalled and has been moving sideways. That may be changing though. This week it is breaking below important support at 106. And if you look below the prospects look gloomy should it not retake that level quickly. The chart above shows that a 38.2% retracement of the move higher would result in a pullback to around 90. And should it get really out of hand the 61.8% retracement is down at 75. These key Fibonacci levels have great importance for traders. Keep an eye on this level.

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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.

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