Molson Coors Brewing Well Structured Setup

Published on Wednesday, 25 January 2012 06:04 Written by Danny Miller

New York, January 25th (TradersHuddle.com) - Shares of Molson Coors Brewing Company (NYSE:TAP) closed the trading session at $42.84 near its 50 day and 200 day moving averages currently set at $41.92 and $43.35 respectively. Molson Coors' price action is above the 50 day moving average but below its 200 day moving average, which provide a nice trading setup, with clear reference points.

Molson Coors Brewing Company (NYSE:TAP) brews beer through breweries in Canada, the United States and the United Kingdom. The company brews Coors Light, Canadian, Molson Dry, Miller Lite, and Miller Genuine Draft, among others. Molson Coors also distributes Amstel Light, Heineken, Corona, Pacifico, and Asahi.

Molson Coors Brewing price action seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Molson Coors Brewing with a small position and wait for the stock to break out above the 200 day moving average at $43.35, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 50 day moving average set at $41.92 breaks it could mean further downside in the horizon for Molson Coors Brewing.