Trading Boston Beer

Published on Thursday, 09 February 2012 07:16 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Boston Beer Company, Inc. (NYSE:SAM) closed the trading session at $102.74 near its 50 day moving average currently set at $102.82. Boston Beer's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

The Boston Beer Company, Inc. (NYSE:SAM) produces a variety of craft-brewed beers at various contract breweries and Company-owned breweries. The Company sells its products under brand names such as Boston Beer Company, Oregon Beer and Samuel Adams.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $98.62 and calculated resistance at $108.16. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Boston Beer shares.

Traders should evaluate their trade if they want to establish a position on Boston Beer given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.