Indications Suggest MONSTER BEVERAGE CORP (NASDAQ:MNST) Could Be on the Verge of a Breakout.

Our stock screener has spotted MONSTER BEVERAGE CORP (NASDAQ:MNST) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:MNST.

Technical Analysis Observations

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Taking everything into account, MNST scores 9 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, MNST is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• MNST is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so MNST slightly outperforms the market at the moment.
• In the last month MNST has a been trading in the 54.73 - 60.34 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.
• Looking at the yearly performance, MNST did better than 89% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• MNST is an average performer in the Beverages industry, it outperforms 58% of 32 stocks in the same industry.

Check the latest full technical report of MNST for a complete technical analysis.

Looking at the 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, MNST has a 8 as its setup rating, indicating its current consolidation status.

MNST has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 58.03, a Stop Loss order could be placed below this zone.

Trading setups like MNST

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Of course, there are many ways to trade or not trade MNST and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.