Send me real-time posts from this site at my email
Fan Yang

Boston Beer Co. (SAM) Continues Retreat - I am Monitoring $320-$325 for Support

Boston Beer Co. $SAM is sliding sharply after share price hit a fresh high around $440. It is now trading just above $350 but I would expect more downside in the short-term.

SAM Daily Chart

(click to enlarge)

- In 2019, price was able to break above a year-long consolidation under $325.
- Now, price is falling back towards this previous resistance. If the overall trend remains bullish, I think the $320-$325 area will turn into support.
- When we look at the weekly chart, we can see that this was also resistance from back in 2015. The point is that this was a previously key resistance. 
- Also note that the 200-day simple moving average resides in this $320-$325 area as well, reinforcing this area as potential support.
- I am looking at SAM as a buy-the-dip candidate, with dry powder waiting in the $320-$325 area. 
- I will be looking for a bullish divergence between price and the RSI on the daily chart, while looking for the RSI on the weekly chart to turn back up around 40.

SAM Weekly Chart

(click to enlarge)

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue