- BUD stock price is trading at $56.98.
- BUD is currently making an inverted head and shoulder pattern in the weekly chart.
The BUD stock price exhibited a higher low structure from April 2022, rebounding from a low of $44.58 to a high of $65.99. However, the $65.99 level acted as a significant resistance, leading to rejections in the past. Presently, BUD is finding support at $54.10 and forming an inverted head and shoulders pattern.
A sustained hold above $54.10 may propel the price towards the $65.99 resistance, which coincides with the neckline of the inverted head and shoulders pattern. A breakthrough with buyer strength could trigger further upside towards the $79.00 resistance level.
Conversely, failure to sustain above $54.10 might continue the downtrend initiated in April 2022, potentially reaching the $47.36 support level.
In the current technical analysis of the stock, the 50 EMA (yellow line) is positioned at $58.44, while the 200 EMA (red line) stands at $64.70. As of now, the stock’s price is trading below both EMAs, indicating a bearish sentiment. This suggests a continuation of the ongoing downtrend.
However, there are potential scenarios to watch for. If the price manages to close above the 50 EMA, it may signal a shift towards a more neutral stance, showing the presence of both buyers and sellers in the market. Furthermore, a close above the 200 EMA could indicate that buyers are gaining strength, potentially leading to a bullish momentum.
The relative strength index (RSI) is currently at 45.37, indicating a bearish sentiment as it is below the 50 level. The downward direction of the RSI line further supports this bearish view. For a potential shift in sentiment, the RSI needs to go up and cross the 50 level, signaling the presence of buyers in the market.
The SuperTrend indicator also confirms the bearish sentiment, as the price is trading below the red line. To see a potential bullish sentiment, the price must close above the red line.
Conclusion
The price of Budweiser is at a very crucial level. The stock is showing signs of bottoming out and there is some potential for a rebound in the near future. However the indicators mentioned above are showing that there is room for a continued downtrend in the market.
Technical levels
Resistance levels:$65.99 and $70
Support levels: $54.10 and $47.36
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
