After some strong earnings last night and a week strong enough to make some of the most bearish traders capitulate, at least temporarily, we get into the final day of the week knowing many more earnings reports await us next week, from some very big names.
Monster Beverage (MNST) doesn't report until the first week in November, but the stock is starting to get some wings under it here.
Like many other names, Monster has been trading in a wide channel since the big August drop and subsequent recovery. The stock managed to break out from the channel yesterday.
Now it is fighting additional resistance in two forms. The first is the resistance going back to July and August. The second is the rising wedge pattern formed over the last few weeks. Seeing the rising wedge intersecting with the resistance of the shorter channel provides a clear stop on the short-term bullish thesis.
Consecutive closes under $140 would position Monster back in the trading channel and neutral territory.
Along with price, Monster just experiencing a bullish crossover in the MACD, along with new highs in the Force Index, Relative Strength Index (RSI) and Commodity Channel Index (CCI); therefore, we have confirmation in trend, momentum and volume and just need a small push in price here. A breakout here should challenge the highs of July.