Daily Stock Report

Monster Beverage Corp. - (MNST) - May 20, 2022

Energy drink producer Monster Beverage (MNST) had been a chronic underperformer in the SIA NASDAQ !00 Index Report but has rocketed up the rankings in the last few weeks as investor interest has shifted from growth/momentum stocks to value/defensive sectors. This week, MNST returned to the Green Favored Zone for the first time since 2016. Yesterday, it finished in 22nd place, up 3 spots on the cay and up 43 positions in the last month 

Having successfully established support near $72.50, a previous resistance level that reversed polarity, Monster Beverage (MNST) shares have been bouncing back. In recent weeks, the shares have been climbing on increasing volumes, a sign of renewed accumulation. 

The first resistance hurdle the shares may encounter is a downtrend line near $92.50, then the $100.00 round number where the top of the current trading range has been established by three previous highs. Initial support has moved up toward $82.50. 

Back in March, a selloff on Monster Beverage (MNST) shares was contained above their early 2020 peak, a former resistance level. Since then, the shares have been on the rebound, climbing from near $72.50 back up above $85.00 and triggering a bullish Low Pole Warning signal. 

Initial upside resistance appears at previous highs near $95.66 and $99.50. A breakout over the $100.00 round number to a new high would confirm the start of a new advance. Initial support appears near $96.95 based on a 3-box reversal. 

With its SMAX score increasing to a bullish 6 this week, MNST is exhibiting strength against the asset classes. 

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