Email of the day (1)
Comment of the Day

October 27 2010

Commentary by Eoin Treacy

Email of the day (1)

on another addition to the Chart Library:
"Please add AMBEV to the Chart Library. AMBEV (Companhia de Bebidas das Américas) has both Brazilian (AMBV3 and AMBV4) and US listings. The US quote price about USD 140. Thanks so much"

Eoin Treacy's view Thank you for this suggestion. AMBV4 and the US listed ADR (ABV) are both already in the Chart Library. The group parent company Anheuser Busch InBev, listed in Belgium, can also be found in the Chart Library.

The ADR accelerated higher, following the successful break above $100, helped by the weakness of the US Dollar. It is in the process of posting a weekly key reversal which raises the potential that a reversion towards the 200-day MA may be commencing.

The Brazilian listing share has also rallied impressively over the last 10 weeks and shares the weekly key reversal characteristic from what is a relatively overextended condition. This also makes the likelihood of a mean reversion towards the 200-day MA more likely.

Anheuser-Busch InBev, listed in Belgium has trended impressively higher over the last two years, posting a rivetingly consistent progression of higher reaction lows. A sustained move below €40 would be required to question the medium-term uptrend.

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