Brewer Molson Coors (TAP) is finally having its day I the sun after spending five full years from 2017-2021 stuck in the red zone of the SIA S&P 500 Index Report. Since January, TAP has been rising up the rankings on renewed interest in consumer staples companies as part of a wider defensive rotation. Last month Molson Coors returned to the Green Favored Zone for the first time since November of 2016. Yesterday, it climbed 14 positions to 51st place and it is up 79 spots in the last month.
This five-year chart highlights a major base forming in Molson Coors (TAP) shares. Since 2020 a bullish Cup With Handle bottom has been forming consisting of a large rounded bottom, followed by a second rounded bottom with a higher low. The shares snapped out of their previous downtrend 18 months ago, and are advancing on $60.00 where a breakout would complete the base and confirm the start of a new uptrend.
Should that occur, measured moves suggest potential resistance tests near $62.50, then $69.00 with previous support and resistance near $70.00 and $82.00 on trend. Initial support appears near $50.00 where an uptrend support line and a round number converge.
Molson Coors (TAP) shares continue to climb within the $42.00 to $59.00 trading range that has prevailed for the last year. Last month, the shares confirmed support remains in place at a higher level near $50.00. This month, TAP has completed a bullish Spread Triple Top pattern with a breakout over $56.70.
A breakout over $59.00 would confirm the start of a new advance. Should that occur, next potential resistance on trend may appear near $62.60 then $67.75 based on previous column highs and lows, then $73.35 or $79.40 based on horizontal and vertical counts. Initial support appears near $42.35 based on a 3-box reversal.
With a bullish SMAX score of 9 TAP is exhibiting strength against the asset classes.
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