Constellation Brands (STZ) is the Stock of the Day on Real Money. Let's review the charts and indicators to see if we can identify the next sustained move.
In this daily bar chart of STZ, below, we can see that prices have made some wide swings since October. An agile trader with skills could have done well on the upside and the downside.
The other day prices gapped higher above the declining 200-day moving average line. Prices are testing the declining 50-day moving average line with some of the indicators improving.
The daily On-Balance-Volume (OBV) line has moved up in the past month and is close to making a new high for the move up. A rising OBV line is a sign that buyers of a stock have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has curved upwards towards the zero line so we could soon get an outright buy signal.
In this weekly bar chart of STZ, below, we can see that prices are above the declining 40-week moving average line. A rising average line would tell us that the trend was up.
It looks like the weekly volume bars have declined this year and the OBV line is just treading water. The MACD oscillator is hugging the zero line telling us that there is little strength to this trend.
In this Point and Figure chart of STZ, below, the software is projecting an upside price target of $234.
Bottom line strategy: There are bullish clues and bearish clues on the charts of STZ. Taking a lesson from the Oracle of Delphi, I would probably anticipate a period of sideways price action on STZ but lead towards an upside breakout if the OBV line continues to move higher.