This Could Be a Monster Breakout

 | Aug 04, 2017 | 2:19 PM EDT
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Stock quotes in this article:

mnst

Monster Beverage (MNST) could break out over its 2015 and 2016 highs. Are you ready? MNST has traded sideways for over two years and it is back to the top of its range.

Our charts and indicators suggest that this time it should be able to break through. Let's check.

In this daily bar chart of MNST, above, we can see prices are above the rising 50-day moving average line. This has been tested successfully in May and early July. There is a bullish golden cross of the 50-day average line and the slower-to-react 200-day line in late May. The daily On-Balance-Volume (OBV) line turned up in April to support the advance with signs of more aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for most of the time since March.

In this three-year weekly chart of MNST, above, we can see  prices are above the rising 40-week moving average line. The weekly OBV line has been rising the past three months and the MACD oscillator is bullish. The $54-$56 area stopped MNST in 2016, but it might not keep a lid on it now.

In this Point and Figure chart of MNST, above, we can see a potential price target of $62.93 -- a new high.

Bottom line: The current advance looks like it can continue and MNST could reach the low $60s. The charts look positive as long as we do not decline below $49.

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