Beer and spirits giant Constellation Brands ( STZ) reported an EPS and revenue beat Thursday morning, but the stock gapped lower at the open and has slumped about 5% in value. Is this a buying opportunity or the start of a deeper decline? Let's check the charts and indicators. 
In this daily bar chart of STZ, below, we can see some choppy price action the past several weeks. Prices skidded lower and tested the 200-day moving average line earlier this month. Another test of the 200-day line appears to be underway today. STZ is trading below the 50-day moving average line.
The On-Balance-Volume (OBV) line has moved irregularly higher from October despite the periodic downdrafts in price. The Moving Average Convergence Divergence (MACD) oscillator is on the edge of the zero line but could turn lower.
In this weekly Japanese candlestick chart of STZ, below, we see a chart in flux. The most recent candle pattern shows an upper shadow as traders rejected the highs. Prices are trading above the 40-week moving average line but the weekly OBV line has turned lower and the MACD oscillator is also pointed lower.
In this daily Point and Figure chart of STZ, below, we can see a potential upside price target in the $311 area. A trade at $220 is likely to weaken the chart picture.
In this weekly Point and Figure chart of STZ, below, we can see a $311 price target like the daily chart above.
Bottom line strategy: Maybe STZ holds right at the rising 200-day moving average line or maybe it doesn't. In this current weak market environment I would not be in a rush to "buy the dip". Check out the wines and beers until the charts look stronger.
