Molson Coors: Keep a Cold One in Your Fridge, and Keep an Eye on the Stock

 | Feb 17, 2017 | 9:30 AM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


Molson Coors Brewing (TAP) has made no sustained upside progress in the past 12 months. Prices have tested the underside of the 200-day moving average line in the past three months, but they have been unable to breakout on the topside.

The current uptick could meet the same fate. Let's look closer.

In this one-year daily bar chart of TAP, below, we can see that the $94 level has become important over the past three months. Around $100 and above has also become a key level since November. Buyers have entered around $94 and rallies have stalled around $100 -- and the underside of the 200-day moving average line.

Recently, the 50-day moving average line has turned up, but the On-Balance-Volume (OBV) line is not (yet) showing aggressive buying. The runup this week has quickly turned to overbought, looking at the slow stochastic indicator (lower panel).

In this three-year weekly chart of TAP, above, we can see that it has been able to rally in the past, but now prices are below the cresting, 40-week moving average line. The daily OBV line was neutral, but on this weekly timeframe the OBV has been declining since early October. The Moving Average Convergence Divergence (MACD) oscillator is in bearish territory below the zero line.

Bottom line: TAP will not stay between $100 and $94 forever -- that much we know. A breakout above $100 is not likely to go far without more aggressive buying. A breakdown below $94 will probably generate further selling, and the $94 to $100 area would become resistance. Have a beer, but keep watch on these levels.

Columnist Conversations

KMX is heading for a nice finish. The stock is up just over 2.7% and is one of the top ten gainers in the SP 5...
Its been a rough year for GIS.  Heavy overhead pressure from the stock's 200 day moving average, which th...
Twitter (TWTR)  is back up to the 62% retracement level of its 2016 high and 2017 low. Above it is&n...
Sears (SHLD) announced they plan to start selling Kenmore appliances on Amazon (AMZN). SHLD shares are surging...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.