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- 1 MNST stock shows signs of reversal from the top.
- 2 Bulls are losing their strength and slipping the gains.
Monster Beverage stock (MNST) price showed signs of weakness and reversed from the top, indicating correction on the top in the previous sessions. Moreover, the chart shows a rounding top pattern which suggests that the stock has made a high of $60 and faced rejection. Afterward, MNST stock could not hold the range and is slowly sinking. Furthermore, the price closed at the 100-day EMA, which, if it breaks, would lead to further bearishness in the stock.
The price action showed that MNST stock had shown signs of correction, and the price retraced from the top at $60. Moreover, the chart shows a negative outlook based on the profit booking in the previous trading sessions.
Furthermore, the stock corrected more than 7% last week.
Monster Beverage Corp. is a holding company that develops, markets, sells, and distributes energy drink beverages and concentrates. It operates through the following segments: Monster Energy Drinks, Strategic Brands, and Others. The Monster Energy Drinks segment sells ready-to-drink packaged energy drinks to bottlers and full-service beverage distributors.
The Strategic Brands segment sells concentrates and beverage bases to authorized bottling and canning operations. The Other segment consists of certain products sold by its subsidiary, American Fruits and Flavors LLC, to independent third-party customers. The company was founded on April 25, 1990, and is headquartered in Corona, CA.
At press time, MNST stock is trading at $55.53 with an intraday drop of 1.51% amid persistent profit booking. Moreover, the intraday trading volume increased by 3.25% to 5.454 Million. The market cap of MNST stock is $58.124 Billion.
Will MNST Stock Bounce From the 100 Day EMA?
On the daily charts, MNST stock has finally stopped the rally, as the sellers arrived last week. From the start of 2023, MNST stock was riding in an uptrend and crossed hurdles decisively. While in a strong uptrend, buyers look strong and sellers have closed their positions. A trend reversal was noted on the charts, and the price flipped from the top.
As per the Fib levels, MNST stock is at the 61.8% level, which, if it breaks, then the price heads toward the 50% neutral level, which is at $50.
Short Term Charts Show Seller Dominance
MNST stock has shown sellers strength, and profit booking in the stock was noted on the short-term charts. Moreover, the price retested the 100-day EMA, which the seller tried to break for further weakness in the stock.
The RSI curve is near the oversold region at 38, and a negative divergence was noted, indicating bearishness in the stock.
The MACD indicator also persisted to form red bars, and a bearish crossover was noted, which signals corrective moves.
Conclusion:
Monster Beverage (MNST stock) has shown a bearish engulfing candle in the last few sessions. The bears started to form aggressive short positions on the stock.
Technical Levels:
Support Levels: $50
Resistance Levels:$60
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
