09Jan10:43 amEST

High Energy Going for New Heights

Three of the main beverage buyout targets, FIZZ MNST SODA (also with NBEV as a small speculative play perking up this morning), are either sporting sound charts or, in the case of FIZZ, attempting to emerge from corrective patterns this morning. 

For a while now, many have speculated on which one of these firms would be the most logical buyout target for a larger cap firm seeking growth in the beverage space (read: DPS KO PEP). Simply put, there have been plenty of seemingly false flags in terms of unusual call option activity regarding clues which crack the case. 

Thus, in these situations we return to the technicals to try to align a given bull thesis with the most sound chart possible. Indeed, we want as many factors in our favor as possible when putting on a trade.

In the case of Monster Beverage, below on the daily chart, MNST still shows us strong technicals seeking fresh highs up and out of a tight base consolidation. Even though MNST was quiet over the holidays, note how little it gave back in price despite a very strong advance dating back to last summer. 

Ultimately, the large beverage firms may wind up taking a pass and not buying any of these targets. After all, it may be a tad too obvious these firms are buyout targets, and the larger firms may simply deem them overvalued and are not willing to pay up for them. Again, in that case we want to be left holding a strong chart and not an empty bag. 

Stock Market Recap 01/08/18 ... Crossing the Rubicon


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