BUD drops to lowest close since March 27th
Anheuser-Busch Inbev SA Sponsored ADR (BUD) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
BUD finished the week -1.78% lower at 82.64 after losing $1.24 (-1.48%) today, underperforming the S&P 500 (-0.58%). Today's close at 82.64 marks the lowest recorded closing price since March 27th. Closing below Thursday's low at 83.00, the share confirmed its breakout through the previous session low after trading up to $0.52 below it intraday.
Daily Candlestick Chart (BUD as at May 17, 2019):
Friday's trading range has been $0.97 (1.16%), that's below the last trading month's daily average range of $1.22. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BUD.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices broke below the key technical support level at 83.04 (now R1), which is likely to act as resistance going forward. The last time this happened on December 17, 2018, BUD actually gained 0.76% on the following trading day.
Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 82.23 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Anheuser-Busch Inbev. Out of 258 times, BUD closed higher 53.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.81% with an average market move of 0.80%.