In-Depth Technical Analysis of MONSTER BEVERAGE CORP.

Our stockscreener has identified a possible breakout setup on MONSTER BEVERAGE CORP (NASDAQ:MNST). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:MNST for potential opportunities.

Analyzing the Technical Aspects

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to MNST. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, MNST is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• MNST is part of the Beverages industry. There are 31 other stocks in this industry. MNST outperforms 80% of them.
• In the last month MNST has a been trading in the 51.72 - 56.70 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• When compared to the yearly performance of all other stocks, MNST outperforms 54% of them, which is more or less in line with the market.
• MNST is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so MNST is lagging the market.

For an up to date full technical analysis you can check the technical report of MNST

Why is NASDAQ:MNST a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:MNST has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, MNST also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 55.46. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 52.96, a Stop Loss order could be placed below this zone.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.