Monster consolidation in Monster Beverage (MNST)
Discussed in this article: Monster Beverage Corporation ( $MNST )
I want to look at Monster Beverage Corporation ( NASDAQ:MNST ) today. These are the guys that make that stuff with all the taurine in it, that’s alternately going to cause you to get a heart attack if you drink too much. Monster ( NASDAQ:MNST ) and vodka, I know it’s enticing, but all it does is make you a wide-awake drunk. It’s kind of working for the stock because right now the bulls are wide-awake, and they’re drunk; it’s moving really nicely out of a volatility squeeze.
Now, the cool thing about this is, depending on how you draw these boxes, you’ve got long or short-term consolidation periods, but consolidation periods they are. Case in point: this is a short consolidation period that’s leading to a volatility pop, a breakout from this volatility squeeze. Now, we can also go back to here, and say, this is just one big, long, kind of a high base. But if we’re going to do that, then we’ve really got to go back to here, or maybe even here. Of course if we’re going to look at consolidation periods we’ve got to go back to here, or to put it another way, here. So this has all been one big, long consolidation phase that goes back years; all we need is a breakout above here, right?
Well I say wrong, because this goes so far back in time that it will make the newspapers if Monster ( NASDAQ:MNST ) moves about above this level, because it will be at a new high. But from a technical perspective there’s so much trading that’s gone on here, and every single shareholder, that bought right at the top, is a loser, they’re all losing money here. This has gone on so long that you can pretty much guarantee that a lot of the folks who bought this on the way up have sold somewhere in here, so it doesn’t really matter. But look at the weekly chart, and you can see again, this is just a long consolidation period here, a really nice consolidation squeeze, squeeze; I think this is going to be a good trade for you.
I think you go ahead and take this stock, and, I hate predicting because if I’m correct then I look like I knew something that I didn’t, and if I’m incorrect then it costs you money if you thought I knew something that I didn’t. But with that said, the way this thing is trading, I got to figure it at least tests $100.00, so that would really be my upside target. Is that a valuation? No, it’s just the first series of numbers here where there are actually three digits as opposed to two, and it’s actually about that scientific.