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Category: Constellation Brands (STZ) and Technical Analysis
Date: 27 July 2020 Stock price of Constellation Brands (STZ): $179.85 Ever wondered where the support and resistance levels for Constellation Brands (STZ) stock is? Is it a good time to buy or is there a dip in its future? We take a look at potential support and resistance levels of Constellation Brands (STZ).
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Right now the 10 day moving average is above but very close to the 30 day moving average. Should the 10 day moving average bounce off the 30 day moving average line and stay above it, its a positive sign for Constellation's stock price and upside can be expected "
More About Constellation Brands (STZ)
Constellation Brands (NYSE: STZ and STZ.B), a Fortune 500® company, is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Mexico, New Zealand, Italy, and Canada. Constellation is the No. 3 beer company in the U.S. with high-end, iconic imported beer brands such as the Corona and Modelo brand families, and Pacifico. Its high-quality wine and spirits brands include the Robert Mondavi and The Prisoner Wine Company brand families, Kim Crawford, Ruffino, Meiomi, and SVEDKA Vodka. The company’s portfolio also includes a collection of highly-rated wine brands such as SIMI and Mount Veeder Winery, spirits brands High West Whiskey and Casa Noble Tequila, as well as new wine innovations such as Cooper & Thief and Spoken Barrel.
Based in Victor, N.Y., the company believes that industry leadership involves a commitment to brand building, our trade partners, the environment, our investors, and to consumers around the world who choose our products when celebrating big moments or enjoying quiet ones. Since its founding in 1945, Constellation’s ability to see, meet and stay ahead of shifting consumer preferences and trends across total beverage alcohol has fueled our success and made us one of the top growth contributors in beverage alcohol in the U.S.
In the beer business, we have solidified our position in the U.S. beer market; enhanced our margins, results of operations and operating cash flow; and provided new avenues for growth. We have made capital investments and acquisitions to increase beer production capacity to secure independence from a supply standpoint and to support the growth of the business. Additionally, in an effort to more fully compete in growing sectors of the highend segment of the U.S. beer market, we’ve made several acquisitions of high-quality, regional craft beer brands and leveraged our innovation capabilities to introduce new brands that align with consumer trends.
In our wine and spirits business, as part of our efforts to focus on higher-end brands, improve margins and create operating efficiencies, we have acquired higher-margin, higher-growth wine brands and portfolios of brands, including Meiomi, Prisoner and Charles Smith, and have strategically optimized the value of this business, particularly lower-margin, lower-growth products, with the divestiture of the Canadian wine business and the expected transaction, which was recently announced, to divest a portion of our wine and spirits business. In addition, we have added higher-end brands to our spirits portfolio through the acquisitions of Casa Noble tequila and High West craft whiskeys.
The summary below shows the sales mix of Constellation Brands. It shows the sales values in Dollar millions as well as the relative contribution to total sales for Constellation Brands:
In the U.S., we are the leading imported beer company and have eight of the 15 top-selling imported beer brands. Corona Extra is the best-selling imported beer and the sixth best-selling beer overall in the U.S. and Modelo Especial is the second-largest and the fastest-growing major imported beer brand.
Based in Victor, N.Y., the company believes that industry leadership involves a commitment to brand building, our trade partners, the environment, our investors, and to consumers around the world who choose our products when celebrating big moments or enjoying quiet ones. Since its founding in 1945, Constellation’s ability to see, meet and stay ahead of shifting consumer preferences and trends across total beverage alcohol has fueled our success and made us one of the top growth contributors in beverage alcohol in the U.S.
In the beer business, we have solidified our position in the U.S. beer market; enhanced our margins, results of operations and operating cash flow; and provided new avenues for growth. We have made capital investments and acquisitions to increase beer production capacity to secure independence from a supply standpoint and to support the growth of the business. Additionally, in an effort to more fully compete in growing sectors of the highend segment of the U.S. beer market, we’ve made several acquisitions of high-quality, regional craft beer brands and leveraged our innovation capabilities to introduce new brands that align with consumer trends.
In our wine and spirits business, as part of our efforts to focus on higher-end brands, improve margins and create operating efficiencies, we have acquired higher-margin, higher-growth wine brands and portfolios of brands, including Meiomi, Prisoner and Charles Smith, and have strategically optimized the value of this business, particularly lower-margin, lower-growth products, with the divestiture of the Canadian wine business and the expected transaction, which was recently announced, to divest a portion of our wine and spirits business. In addition, we have added higher-end brands to our spirits portfolio through the acquisitions of Casa Noble tequila and High West craft whiskeys.
The summary below shows the sales mix of Constellation Brands. It shows the sales values in Dollar millions as well as the relative contribution to total sales for Constellation Brands:
- Beer: 5,202.1 (64.1%)
- Wine: 2,532.5 (31.2%)
- Spirits: 381.4 (4.7%)
In the U.S., we are the leading imported beer company and have eight of the 15 top-selling imported beer brands. Corona Extra is the best-selling imported beer and the sixth best-selling beer overall in the U.S. and Modelo Especial is the second-largest and the fastest-growing major imported beer brand.
Technical analysis of Constellation Brands (STZ) stock
While there are many different technical analysis indicators we tend to follow the principle of keeping things simple. The KIS principle. So we will take a look at the shorter term moving averages and the longer term moving averages as well as the Relative Strength Index (RSI). So let's focus at the longer term moving averages first. The image below shows the stock price of STZ as well as its 50 day and 200 day moving average as well as the RSI for Constellation Brands (STZ).
The RSI doesn't really provide much direction in terms of where the stock of Constellation Brands (STZ) stock price If the RSI is above the 70 mark, it usually indicates that a stock is overbought and due a correction and if the RSI is around 30 it shows a stock is oversold and a spike in the stock price can be expected. As the RSI basically at the mid point of 50 it shows some consolidation is taking place. So where to from here?
Turning our attention to the moving averages one can see the 50 day moving average is close to but below the 200 day moving average. If the 50 day moving average crosses below the 200 day moving average it is a negative sign and indicates potential stock declines, and if it breaks through above the 200 day moving average it is a positive sign for STZ stock price. If it fails to break through the 200 day moving average mark then downside can be expected. We will take a look at support and resistance levels of STZ later in the article
So should STZ stock decline it will find medium and longer term support at the following prices:
The image below is similar to the above expect the moving averages are a lot shorter, however they are interpreted in exactly the same way as the longer term moving averages.
Turning our attention to the moving averages one can see the 50 day moving average is close to but below the 200 day moving average. If the 50 day moving average crosses below the 200 day moving average it is a negative sign and indicates potential stock declines, and if it breaks through above the 200 day moving average it is a positive sign for STZ stock price. If it fails to break through the 200 day moving average mark then downside can be expected. We will take a look at support and resistance levels of STZ later in the article
So should STZ stock decline it will find medium and longer term support at the following prices:
- 50 day moving average: $177.02
- 200 day moving average : $177.14
The image below is similar to the above expect the moving averages are a lot shorter, however they are interpreted in exactly the same way as the longer term moving averages.
Right now the 10 day moving average is above but very close to the 30 day moving average. Should the 10 day moving average bounce off the 30 day moving average line and stay above it, its a positive sign for Constellation's stock price and upside can be expected (resistance levels for Constellation Brands will be looked at in the next section of this article).
However should the 10 day moving average fall below the 30 day moving average its a negative sign for Constellation Brands, and downside can be expected.
So let's take a look at the support levels provided by the 10 and 30 day moving average.
So should AMZN stock pull back the first support level will be at $3081.94, its 10 day moving average, after which its 30 day moving average should be seen as the next support level.
However should the 10 day moving average fall below the 30 day moving average its a negative sign for Constellation Brands, and downside can be expected.
So let's take a look at the support levels provided by the 10 and 30 day moving average.
- 10 day moving average: $180.01
- 30 day moving average : $179.35
So should AMZN stock pull back the first support level will be at $3081.94, its 10 day moving average, after which its 30 day moving average should be seen as the next support level.
Support and resistance levels for Constellation Brands (STZ) stock based on pivot points
Lastly we take a look at the support and resistance levels of Constellation Brands (STZ) based on pivot points. Pivot points are calculated by taking the average of the high, low and closing price over a particular period selected (in this case a month)
Below a summary of the resistance levels, pivot point and the different support levels for Constellation Brands (STZ)
So should the stock of Constellation Brands (STZ) hit $188.13 it might struggle to get past that level and if it does its next resistance levels will be at $201.31 and $213.25. However should the stock of Constellation Brands (STZ) decline and get to the pivot value of $176.19 and drop below it it will most likely find support at $163.01 and if it falls below that the next support line level is at $151.07 and $137.89. We will be keeping a close eye on Constellation Brands over the next few days as the 10 and 30 day moving averages will be providing the guidance on where the stock is heading, and once that is known the support and resistance levels can be used to determine investors buy and sell strategies.
- Resistance 3: $213.25
- Resistance 2: $201.31
- Resistance 1: $188.13
- Pivot Point: $176.19
- Support 1: $163.01
- Support 2: $151.07
- Support 3: $137.89
So should the stock of Constellation Brands (STZ) hit $188.13 it might struggle to get past that level and if it does its next resistance levels will be at $201.31 and $213.25. However should the stock of Constellation Brands (STZ) decline and get to the pivot value of $176.19 and drop below it it will most likely find support at $163.01 and if it falls below that the next support line level is at $151.07 and $137.89. We will be keeping a close eye on Constellation Brands over the next few days as the 10 and 30 day moving averages will be providing the guidance on where the stock is heading, and once that is known the support and resistance levels can be used to determine investors buy and sell strategies.