Anheuser-Busch (NYSE:BUD) declined Wednesday. Lower sales volume across the company’s portfolio of products underpinned the decline, with Bud Light leading the charge with a 25.7% fall for the week ending May 20, according to Evercore.
In the opinion of experts, the stock has now retraced to what appears to be a very key level of support. For those that may have missed what the controversy is all about, a cursory review of the recent articles on Seeking Alpha's BUD quote page is in order.
In the experts’ opinion, if BUD stock breaks the current support level, there is at least another 10% downside here, and more if sales data continues to be weak. Recent data has suggested sales are indeed plummeting, and a bearish take continues to be correct. Bulls need to circle the wagons at current levels in our opinion, as this is a pivotal spot for the stock.
They also opine that, The stock is sitting at a level that has enjoyed support since December up until the end of March in the $56-$59 range. A break below this suggests in our opinion that shares could fall to $50.
While the chart above is for simple visual purposes only, more complex charts with annotation are provided through our service when discussing ideas like this. However, we think the data suggests that a BUD break lower is likely.
BUD shares paled 69 cents, or 1.3%, to $53.77.
