Summer is over in the Northern Hemisphere and the baseball season is winding down but still beer consumption must be soaring because Anheuser-Busch InBev (BUD) broke out on the upside from a lengthy sideways consolidation.
In this daily chart of BUD, below, we can see that prices went nowhere from December until recently. There were four attempts to clear the $130 level in the second quarter but they were unsuccessful.
Prices have crisscrossed above and below the neutral 50-day average line for several months. The rising 200-day line acted as support and a buying opportunity a number of times since June.
The On-Balance-Volume (OBV) line and the MACD oscillator have both tuned up with the recent price improvement and help to confirm this breakout.
In this weekly chart of BUD, below, the upside breakout is easier to see. Prices are above the rising 40-week moving average line. The OBV line on a weekly timeframe has been rising for the past two years and is foreshadowing continued price strength. The weekly MACD oscillator has been in positive territory since April and is crossing to a new buy signal.
I would remain positive on BUD unless there was a pullback to $126. If that occurred it would make the chart pattern look like a bull trap.