Beer, wine and spirits biggie Constellation Brands (STZ) has seen its stock price lose a lot of fizz in recent weeks on news, including a disappointing earnings report the other day.
Let's check out the charts and indicators to see if this is the time to become a buyer or whether there is further downside to go. Interestingly, TheStreet's Quant Ratings service upgraded its rating on STZ Friday.
In the daily bar chart of STZ, below, I can see that the shares quickly turned lower in early December. Prices quickly broke below the 50-day and 200-day moving average lines. The move lower was a small "measured move" or "A/B move" in that the distance traveled in the first part of the decline was repeated after a two-week pause in mid to late December.
Trading volume surged sharply higher in recent days telling me that traders have voted with their feet. The On-Balance-Volume (OBV) line has declined quickly through December and tells me that sellers of STZ have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator went to a sell signal by the middle of December.