Shares of Boston Beer (SAM) have traded lower the past 12 months but it wasn't until Tuesday that a major sell-side firm cut their fundamental rating of the beverage firm to "sell" with a $318 price target.
Let's get some chilled pilsner glasses and check out the charts and indicators.
In the daily bar chart of SAM, below, we can see that the shares gapped lower in July and have drifted lower and lower into June. Prices are trading just below the declining 50-day moving average line. A breakout over the 50-day line is likely now that the broader market average has been improving. The slope of the 200-day moving average line is negative and intersects around $440 or so.
The On-Balance-Volume (OBV) line has been steady since February and is a bullish divergence when compared to the price action which continued to make lower lows. The Moving Average Convergence Divergence (MACD) oscillator has been below the zero line for most of the past year but now is close to the underside of the line and edging upwards.