Anheuser-Busch (BUD) topped out at $116 in June 2014 and pulled back into a test at $100 in October. That marked the low, ahead of a rally to resistance that completed an inverse head-and-shoulders breakout in January. The uptrend topped out in a head-and-shoulders pattern that broke to the downside last week, landing the stock back at the 2014 breakout level.
That support has aligned with the 200-day EMA, suggesting that long-term cycles will turn higher in the weeks ahead. However, it's too risky to buy until it tests and closes back above the broken H&S neckline at $122. Note how that level has aligned perfectly with the 50-day EMA. Accumulation has held up relatively well in the correction, suggesting that bulls will ultimately prevail and lift price to a new high.
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