ABUD34 trade ideas
ANH Potential Break UpsideANH has formed a bullish flag below resistance from 2017 through 2019, it has good prospects of breaking to the upside. A good entry point is when a swing low forms on the daily time frame or when price closes above the blue trendline. A stop loss can be guided by price going below 24 November as this would indicate trend is gaining momentum to the downside.
This BUD has been tainted - the case for short selling BUDI wanted to present to everyone the reasons why we like short selling BUD including the use of long put options
The first and primary reason is because of the risk/reward ratio. The risk-to-reward is 1 to 15, even though there is never a risk free trade, BUD went into such an overowned or extended price placement that it would be difficult to sustain such momentum
In this case we have 1000 shares short to (1) allow for 10 call options in case the trade does not go our way - the no loss rules applies to all trades
Here is the reasonsing for publishing this idea
PRESS THE PLAY BUTTON. The feedback about the efficacy of this trade matters.
(1) to allow for the play button to validate our idea, in time winning trades should be seen
-A heavy short sale like this can be covered in several different locations, that is the targets that we laid out on the chart 61, 58, and 52 or 51
-The stock recently traded in an overbought territory from early 2022; namely at a time when the market was peaking for January/February of 2022
-there have been many upside gaps along the way up they tend to fill
-at the moment price is very high above its moving average and stocks do show a tendenncy of reverting back to the mean
-the longer term equilibrium is near 50 and the news flow will not be very positive to its customers about its insane marketing campaign, the company will have to do a lot to repair its reputation after recent events
I placed an overall target somewhat close to price because drink stocks tend to do well even in light of blunders like recent times. There is always room for improvement, and we are enthusiastic about showing the results as they come in.
From woke to broke?Imagine you're standing there drinking your favorite beer, a Bud Light.. then you suddenly realize you're holding a beverage featuring the picture of this jawn on it. EASILY the most popular beer amongst conservatives. Once word of this gets out.. anyone of their buddies even caught drinking it will get joked on... for a long time.
ANH Hitting Megaphone ResistanceANH price has rallied into a resistance that has restricted price from the lows. Ideally price should consolidate or move to target the support of the megaphone from which it must bounce upwards, by then RSI14 should be nearing oversold levels. This is a dip that can be bought for those who missed the early moves. However one must work with tighter stop losses when uptrend resumes.
$JSEANH - AB InBev: Buy The Dips, More Upside AheadTalk about a perfect analysis that takes-off almost immediately.
The last time I covered ANH was on the 30th of October 2022 and the share has traded as expected, link below.
Using Fibonacci Expansion projections, wave(3) is usually 1.618*wave(1) but for modest targets, I initially use 1.00-1.236*wave(1).
Using this modest range, wave(3) should push into the R1343,69-1470,89 zone.
With momentum strong on the upside, dips will provide good entry points.
ANH Showing Exhaustion at ResistanceANH has laboured to move higher & is facing the following headwinds:
1. RSI is struggling to make a new high despite price going higher (RSI in overbought territory)
2. Each rally is being sold off around current area of resistance
Once price makes a swing high, that will be the cue to open a short position targeting take profit on a swing low confirmation below the upward slopping trendline.
ANH ready for flying fish to R1023.73W Formation on the daily has recently broken up and out of the neckline.
It then retested the support and bounced up, showing demand and buying is in play.
Moving Averages are almost perfect but price is still below 200MA...
Target R1023.73
With the JSE on the next up-leg, this could help boost the share price with this trade idea.
$JSEANH - AB InBev: Is The Complex Correction Over?ANH can be used a case study for the practicality of the Elliott Wave principle.
The recover from the March 2020 low at R572,67 to the peak at R1111,64 unfolded as a Leading Diagonal labeled 1 to 5 for a higher degree wave (1).
The share price has since consolidated for almost two years but could the consolidation be over?
Complex corrections in the EWP, (WXY or WXYXZ) consist of a combination of the basic zig zag, flat and triangle patterns.
In the case of ANH, W is a regular flat, X is an elongated flat and Y is a triangle.
If this count is correct and the correction is over, price should hold above R804,72 which is the invalidation level.