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June 1 Chart of the Day - Budweiser

Backlash against Anheuser Busch's (BUD) Bud Light brand continues to depress the stock's price but is it Technical Analysis or News?

One can certainly make the case for "news" given the company's marketing tactics that recently upset its loyal customer base.  On the other hand, the case can also be made for "technical analysis" because price has been moving in a very technically correct fashion given the news events.

The stock has dropped 21% during the last two months from $67.09 to $52.74 without breaking anything technically speaking.  But price is now at a potential support area that coincides with the company's public relations and advertising maneuvering to address what has been viewed by many as a marketing blunder.

Recent headlines like this continue to place downward pressure on the stock price.

So what's next?

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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