Shares of Monster Beverage (NASDAQ: MNST) soared almost 8% Friday to fresh all-time highs after the company reported better-than-expected earnings. While the stock remains attractively positioned in the longer term from a technical perspective, the daily chart has grown increasingly steep since late August, and Friday’s rally took it vertical. #-ad_banner-#Traders now have a chance to make quick profits on a bearish reversal and classic mean-reversion move lower. On Thursday after the close, Monster reported earnings for the third quarter increased 32% year over year to $0.70 a share, beating estimates for $0.68. Sales… Read More
Shares of Monster Beverage (NASDAQ: MNST) soared almost 8% Friday to fresh all-time highs after the company reported better-than-expected earnings. While the stock remains attractively positioned in the longer term from a technical perspective, the daily chart has grown increasingly steep since late August, and Friday’s rally took it vertical. #-ad_banner-#Traders now have a chance to make quick profits on a bearish reversal and classic mean-reversion move lower. On Thursday after the close, Monster reported earnings for the third quarter increased 32% year over year to $0.70 a share, beating estimates for $0.68. Sales grew 8% from the same quarter a year ago, but revenue of $636 million was below the $642 million estimated by analysts. Following the earnings report, brokerage firm Stifel Nicolaus reiterated its “buy” rating on the stock, raising its price target price to $115 from $110. Credit Suisse (NYSE: CS) also restated its “outperform” rating and bumped its target to $115 from $98. Their target sits about 7% above current prices, but the charts say traders have a better chance at making profits on the downside here. After an exhaustive run into June 2012, MNST sold off hard… Read More