Stella, Hey Stella, Grab Me a Stella Artois

• Posted by Greg Harmon
• on January 29th, 2015

The photo above is from Marlon Brando’s famous scene in A Streetcar Named Desire. He is yelling at his wife Stella who is leaving him. “Stella, Hey Stella!” Brando Did not win an Oscar for this role. Seems like he is the only actor in the film that did not win an Oscar. So maybe he was not yelling at his on screen wife but instead for a beer. A Stella Artois. It makes sense today, as the stock price of the maker of Stella Artois, Companhia de Bebidas das Américas, better known as AmBev ($ABEV) is about ready to break out.

AmBev spent most of the second half of 2014 in a descending channel, falling from a price of 7.56 to a low of 5.56. It had one venture out of this channel, a false break out to the upside, that touched 6.77 briefly. The channel broke in early January and rose to test that break out level. After a very short pullback it is retesting it again, a triple top. There is a saying in technical analysis that goes, ‘there is no such thing as a triple top’. This means that on the third try price often breaks through.

There is no guarantee this time but the other indicators support it happening. The RSI is bullish and rising and the MACD is rising. Volume is picking up and the stock is being accumulated. A break of resistance carries a target of 7.56. Sound familiar? Maybe it is time for you to pull out a Stella and ride Ambev higher.

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