Good Setup Developing in Molson Coors Brewing

Published on Wednesday, 18 July 2012 06:04 Written by TradersHuddle Wire

New York, July 18th (TradersHuddle.com) - Molson Coors Brewing Company (NYSE:TAP) closed the trading day at $40.92, near its 50 day and 200 day moving averages set at $39.91 and $41.64 respectively. Molson Coors' price action placed the stock above the 50 day moving average but below its 200 day moving average, providing 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 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 appears to be the best way to maximize possible movements in the stock, as traders could establish a small position in Molson Coors Brewing and wait for the stock to break out above the 200 day moving average at $41.64. Then they could add to the position as momentum builds with the breakout. On the other hand, if support being referenced at the 50 day moving average set at $39.91 breaks, it could signal further downside for Molson Coors Brewing in the horizon.