Despite being a non-cyclical industry, consumer staples performs better during the holiday season.
If we go back over the last 20 years, we can see how the sector performs better and generates more intriguing returns during (or in preparation for) Easter, Summer, and Christmas. In the last five years, even better results have been observed, with July and August ranking among the greatest months of the year.
The Consumer Staples sector has the coming months on its side in terms of seasonality. The Relative Rotation Graph (#RRG) now supports this theory: in fact, using a much shorter time frame, we can see how the sector is now leaving the “lagging” section and crossing into the “improving” one.
Looking at the #XLP’s recent swings, the ETF found a good area of support on the 100MA, and it’s now going north on positive volumes. Furthermore, the MACD is going to crossover with the RSI, which is approaching the negative trendline: a breach of it could support a further upward push.
Over the short term, upside potential ranges between 4% and 6%.
In order to go into further detail, we’ve created a watchlist of four stocks that we believe have a technical setup that favors positive moves. Furthermore, the stocks listed below have an excellent risk/reward ratio and are all in the Brewers and Distillers business.
Molson Coors Beverage Company, or simply Molson Coors, is a worldwide beverage and brewing corporation headquartered in Chicago, Illinois.
The stock has lately pulled back from its all-time high and is now trading at $52.00, which served as resistance throughout the first quarter of 2021.
The MACD is indicating negative momentum, while the RSI is in oversold zone, indicating that there is opportunity for upside movement.
We are analyzing two entry points because the market is now overstretched to the downside. If the price recovers rapidly, we will wait for a closure above the 100MA before considering long positions.
Alternatively, if the stock fails to return above the 100MA, we will wait until the price reaches $50 before starting any position.
The first entry range is $ 54.00 to $55.00.
$ 57.00 is the first goal.
$ 60.00 is the second target.
$ 52.00 as a stop-loss.
$ 49.50 – $50.50 is the second entry range.
$ 57.00 is the first goal.
$ 60.00 is the second target.
$ 49.00 as a stop-loss.
Boston Beer Co., Inc. is a company that sells alcoholic beverages. Samuel Adams, Twisted Tea, Angry Orchard, and Truly Hard Seltzer are among the company’s brands. C. James Koch created the company in 1984, and it is based in Boston, Massachusetts.
Since April 2021, the stock has been in a bearish channel, and it is presently approaching a significant area of support. Because of the strong area, the stock may enter a period of consolidation before drifting upward.
The MACD is below 0 and moving almost sideways: this might be interpreted positively because the price was down with a momentum that was nearly unchanged over this time.
The RSI has reverted to almost oversold level, indicating that there is still plenty of possibility for upward movement.
In terms of entry price, there are two possibilities: a move closer to existing support or a breach of the current bearish channel.
The first price range is $ 930.00 to $895.000.
1st goal: $1200.
$ 1,300 is the second goal.
$ 860.00 as a stop loss.
$ 1,015 – $1,050 is the second entry range.
1st goal: $1200.
$ 1,300 is the second goal.
$ 860.00 as a stop loss.
Anheuser-Busch InBev SA/NV, or AB InBev, is a multinational beverage and brewing corporation headquartered in Leuven, Belgium.
The stock just closed a gap that had existed since the beginning of May and is now a firm support level. Near $ 70.00, there is also the 100MA, which previously served as support and is a reliable indicator of the positive trend.
Despite a MACD that has gone below zero, it is the RSI, which is presently extremely near to oversold area, that could signal a move to the upside.
We recommend putting a tight stop loss right below the 100MA, and if the price doesn’t hold, we’ll look at $ 65.00 as an alternative entry point.
The starting price is between $ 71.00 and $ 70.00.
$78.00 is the goal.
$ 68.00 as a stop-loss.
Constellation Brands, Inc., a Fortune 500 corporation, is an American beer, wine, and spirits producer and marketer. In terms of sales, Constellation is the largest beer importer in the United States, with the third-highest market share among all major beer providers.
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Since the beginning of the year, STZ has been trading sideways, and we feel the conditions will soon be present for a breakout to the upside.
We believe the stock will test the $224.00 level again before breaking present resistance, providing a nice risk/reward long opportunity.
The MACD is curving down once more, along with the RSI, which is pointing down.
The price range for entry is $ 223.00 to $225.00.
$ 238.00 is the first target.
Target 2 is valued at $250.00.
Stop loss is set at $ 216.00./n
