Super Bowl Party Prep: Now for the Beverages

• Posted by Greg Harmon
• on February 3rd, 2011

The final step in preparation for your Super Bowl Party is buying Beverages for your guests to go along with Buying the Dip and Chips (see below). Here are three ideas in the beverage space that will cover your needs for a pregame glass of wine or cocktails, beer during the game, and coffee to close out the party.

Wine and Cocktails – Constellation Brands (Ticker: STZ)

Get the party started with Constellation Brands, STZ, the maker of Kim Crawford and Mt Veeder wines, and Svedka vodka. It’s chart is above. Notice first that the 18.80 level has been important for the last nine months and is where it found support in the last pullback. Next the Relative Strength Index (RSI) started to rise last week after riding along the technically oversold level at 30 and is pointing nearly vertical as it approaches the mid line at 50. The Moving Average Convergence Divergence (MACD) indicator has been improving since peaking at the initial price bottom and has crossed bullishly about one week ago. Finally note that the price has just crossed the mid line of the Bollinger bands (BB) as price has been slowly lifting. Look for this lift to continue through the 100 day Simple Moving Average (SMA) and on to resistance near 20.40 and 20.70 above that. If the RSI breaks through 50 and continues to point up it could challenge 21 or 22.50 the previous high.

Beer for the Game – Molson Coors Brewing (Ticker: TAP)

During the game you can serve both Coors Lite and Molson to your guests with one stock Molson Coors Brewing, TAP. The chart is above. The first thing that stands out from this chart is repetitively the price bounces in the BB range. I have marked in blue the 9 instances where price hit the lower BB and then went on to hit the top BB as well, and in red the 2 times where it did not retrace to the top BB but stopped at the mid point. Nine of the last 11 times. This 12th time it is now through the mid point. Next the MACD has recently been improving and is currently crossing. Third the upward pointing RSI is about to test the mid line. Next the price has also broken back above the 23.6% Fibonacci retracement level and is pennies away from the 100 SMA at 48.23. All of these indicators suggest that if it can get through the 100 day SMA that it will rise and may meet resistance at the convergence of the BB and the 50 day SMA at 48.89. This would make a higher high and lead to an expectation of a move to resistance at 50 and then a test of the previous high at 51.11.

Coffee to Close Out – Caribou Coffee Co (Ticker: CBOU)

The chart for Caribou Coffee, CBOU, above rounds out the picks. The first item to notice is the Fibonacci retracement levels. The fall in price retraced just over 50% of the move from the lows touched in February through April of 2010, to the high in November, after finding some support first at the 38.2% retracement level. It is now moving higher and has regained the 38.2% level. it would be natural to expect a move higher now to about 10.45, a 505 retracement of the down move. This has a few key levels to get through first before it is clear. The first is the mid line of the BB at 9.95, only a few pennies higher. The second is the 200 day SMA at 10.02. The improving and crossing MACD and rising RSI are supportive of a move through these levels. The next resistance higher would come at 10.30 and then 10.52 to 10.70, which has been resistance previously, before it can test 11.10 and then the previous high.

Like all my ideas, these are not guaranteed to move to these levels, but based on the technical set up pose good opportunities to watch. So now that you have the menu sit back and enjoy the game.

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

Stock up on These Chips Before the Game

Game Time Party Prep: Buy the Dip for those Chips

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