Reference Points for Molson Coors Brewing

Published on Thursday, 05 July 2012 06:28 Written by TradersHuddle Wire

New York, July 5th (TradersHuddle.com) - Molson Coors Brewing Company (NYSE:TAP) closed the trading day at $41.67, near its 50 day and 200 day moving averages currently set at $40.10 and $41.63 respectively. Molson Coors' price action placed the stock above these important levels, which could translate into a trading opportunity.

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.

Although, the price is above important moving averages, it's important to highlight that this is not a prime setup for buying the dip strategy, as the 50 day moving average is currently below the 200 day moving average.

The peaks and troughs algorithm shows calculated support at $37.96 and resistance at $41.84. These levels should also be evaluated by traders when planning their next move, as they provide an insight into the latest price action.

If traders want to establish a long position in Molson Coors Brewing, it will certainly be better to wait, given that the stock is technically broken with the 50 day moving average trading below the 200 day moving average. Traders can also look at the current range defined by the peaks and troughs to establish a short trade versus those levels.