Thursday, March 30, 2017

BUD tracking the 50 day moving average

Anheuser-Busch InBev SA/NV  [BUD]    

Slow and steady wins the race. Since their rapid drop in stock price back in October/November of 2016 it has been tracking upward, slowly but surely. It has bounced off the 50 day moving average twice now and is creating a pattern.

In my unprofessional, uninformed opinion, the stock price will continue to slowly climb upward. The 50 day moving is steadily increasing and creeping up on that 200 day moving average. I would venture to guess [literally guess] that in about 2 months time the 50 day will cross the 200 day. Obviously it would have to keep up with the pattern it's on now, but there is no news indicating it won't. Not yet, anyway. Below is my in-depth analysis...

I just extended the lines outward in roughly the same linear fashion. Drew a circle around the cross. Dotted line down to figure out exactly where it crossed and then figured out about 2 months time and copied and pasted that line over. Turned out to be almost 2 months. 

Now, in all honesty and with all else being equal, I am bullish and long on Anheuser-Busch and do believe that it will continue to increase and maybe even cross. If it keeps rising then a cross can be expected and then other investors, bullish investors, may take note on the golden cross and push it even further. 

As far as company specifics and earnings and the financial side I don't know a whole lot. They had a poor earnings report at the end of February but have since recovered on the news that the miss wouldn't matter. Their future guidance kept investors moving forward instead of just slamming on the breaks. 

Like I said, the stock price is tracking the 50 day moving average very well. After two straight down days and the stock approaching the line, I would venture to say it will bounce back up and continue tracking that direction. 

Edit: Tuesday, June 13th. In an unfortunate turn of events, BUD dipped below its 50 day moving average in a bearish manner. I hate when this happens. More often than not it is a bad sign for the stock price as it wasn't able to hold the support line thus doesn't have the strength or momentum to carry forward. It was really good to see the gain today as it reaches back up toward the 50 day. If it can climb back above it then I am mostly back on board. I will be keeping a watchful eye on this for the next couple days and weeks. Hopefully not weeks, though. 

If you look closely, and maybe this is my blinding optimism, but had it not been for that huge increase at the beginning of May then this is where the price would be heading following a linear path. The 50 day moving average from the middle of February until the beginning of May was pretty linear. If you follow that out it hits the $112.00 mark. The golden cross may have come earlier than it was supposed to. Like I said, keeping a watchful eye here is important. 

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