CCU daily March 25th
CCU (Compania Cervercerias Unidas) continues to move higher since breaking out, despite the sharpest selling in the broad markets in some time. CCU was posted as a Long Trade Setup on Monday & went on to trigger a long entry on a break above the downtrend line yesterday. As the stock is now rapidly approaching T1, prepare to book partial or full profits and/or raising stops if holding out for T2 and/or T3.
CCU is a good example of how a bullish chart pattern can overcome a bearish tape. It is also not a coincidence that CCU is a foreign company (a Chilean based co. dealing primarily in Chile, Argentina, Uruguay, and Paraguay) in a defensive industry (beverages) to boot, as I’ve passed on numerous bullish looking setups on US based companies, such as the recent breakout of TWTR from the large symmetrical triangle pattern (daily/weekly chart). The gains following that recent breakout in TWTR are being faded today as most US tech stocks are facing forced selling due to broad-based selling in index funds & etfs. (e.g.- When the QQQ comes under selling pressure, the components of the $NDX must be sold as well).