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Fan Yang

New Age Beverages (NBEV) - Support Turns into Resistance; Bears in Charge

New Age Beverages $NBEV is likely in for a longer period of bearish correction. Let's first go back to April:

NBEV Daily Chart

(click to enlarge)

Failed Breakout:
- On the daily chart, we can see that price was in a bullish breakout in April.
- However, the session high from the breakout has not been challenged since.
-  This shows that the bullish breakout was weak and that bears were still in charge.
- Price eventually settled back into a descending triangle. 
- Eventually, in early June, price fell broke down the common consolidation support and the 200-day simple moving average (SMA). 
Bearish Confirmation:
- After breaking below below the support at $4.95-$5.00, price visited $4.25 before finding support. This was a previous resistance pivot.
- However, after rallying from $4.25, price found the previous support around $5.00 to be resistance.
- This is a bearish dynamic and suggests further downside.
- In the extended bearish correction scenario, we have the $2.55-$3.00 as the next key support/resistance pivot area. 
- At this point, I would only consider a buy if price slides to this range. 
- Even then, the upside might be limited to $5.00 for a while.

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