Alcohol Stocks Fizzled
A Technical Overview
It was early January when the U.S. Surgeon General issued a landmark advisory warning that alcohol consumption increases cancer risk and called for updated health warning labels on alcoholic beverages. Since then, alcohol stocks have continued to slide, pressured further by the fallout from Trump’s tariff war. Analysts now note that many alcohol stocks are trading below historical valuation metrics after a stretch of weak performance and persistent negative sentiment.1
Here are three alcohol stocks worth watching as they approach significant technical support levels.
Molson Coors Beverage (TAP)
TAP has repeatedly failed to break above its major resistance trendline, which dates back to 2016, and is now hovering near its $49 support. The volume profile suggests even stronger support at $43, where the highest volume shelf sits. The most compelling risk/reward setup lies at the green supporting trendline, extending from the 2006 lows and intersecting with the depths of the 2008 financial crisis and the COVID-19 pandemic.
