fbpx
Thank you for subscribing, please check your email for access
Home Stocks to Watch Ambev S.A. is Nearing a Bullish Breakout

Ambev S.A. is Nearing a Bullish Breakout

The fourth quarter’s almost done, and what a year it’s been. 2019 gave us a little bit of everything, didn’t it? Trade war drama, huge swings in price, rate cuts, and historically low unemployment to boot.

Don’t forget about the freshly tallied impeachment vote, either.

For months now, bears have been shorting the market, waiting for the “crunch” to come. Stocks looked overbought since late October, but the market just kept on rising.

Now, though, bears are the ones feeling the heat. Having gotten scorched for much of Q4, pessimistic investors continue to believe that a major correction is in the works.

And you know what? They’re right; equities will sell-off. But who knows when that’s going to happen. As of today, the market remains within range of another surge.

When the correction (albeit a small one) hits, it might not even stick. And until a downturn arrives, we’ll continue to make money on long trades – most of which have performed very well over the last few weeks.

Ambev S.A. (NYSE: ABEV), for example, appears ready to continue its run in 2020.

In the weekly candlestick chart above, you can see that ABEV is back on the warpath after selling-off in Q3. The stock bottomed out on the lower Bollinger Band (BB) in November, and now lingers near its October high – a point of key resistance.

The current weekly candlestick is trading above the last seven, and the stochastic indicator remains miraculously below 80, suggesting that ABEV isn’t overbought quite yet.

Most importantly, ABEV just broke out of its minor bearish trend, signaling a bullish breakout that will soon be confirmed if the stock keeps rising. As an added bonus, we have two slightly higher lows logged since May.

Should ABEV trade slightly above the current week’s high (and key resistance), it might make sense to go long with a trade trigger of $4.75. Past that, another level of resistance sits at $5.40 – the yearly high. If ABEV can breakout past that price level, a huge rally could follow.

So, over the next few weeks, watch for a bullish move from ABEV. The stock had a rough 2019, and now that the future looks a little brighter for international stocks (ABEV is based out of South America), ABEV could be ready to surge.

Michael James
Michael James has been an avid cryptocurrency trader since the very first Bitcoin was minted. With a background in technical analysis and long-term cycles, he's helped thousands of investors navigate the digital currency markets.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Great Stock Market HOAX

Don’t put another penny into the stock market until you see THIS.

A Wall Street insider just went public with SHOCKING news…

It has nothing to do with some urgent market crash prediction, or anything like that.

Instead, what this man reveals on camera will likely make anyone investing in stocks today, kick themselves tomorrow.

In this groundbreaking interview, Venture Capitalist Matt Milner reveals everything…

Click here now for all the details.

Sponsored by Crowdability

An Opportunity Larger Than The NFT, Crypto, and Stock Market?

Charlie Shrem — one of bitcoin's first investors — just revealed what he believes will be the top crypto opportunity of 2022.

And it isn't NFTs...

Or bitcoin.

In fact, this is an entirely new way to play the crypto space... A technology trend so revolutionary, that experts believe it could be worth $544 trillion.

And Charlie is going to show people how to get in on the ground floor.

Just click here to watch his latest trade on air now.

Sponsored by InvestorPlace