Trading Ideas

ANHEUSER-BUSCH INBEV – Beginning of more Froth or heading for a Trough?

$JSEANH – Beginning of more Froth or heading for a Trough? by SchalkLouw on

So confession time – this will be the one that got away for me in 2019 thus far. What’s not to like about the product?

Great recovery coming from $JSEANH since the start of 2019, bring the price at a point where investors need to be sober and alert. Currently, at year-to-date performance of 31.5%, ANH finds itself at the top of the diagonal parallel channel . The price broke for a brief moment, but find itself back into the channel. The company is still overbought according to its 14-day RSI , but watch out for that Golden Cross.

A pullback could see the price test resistance at both the 50-day & 200-day moving averages (R1180). A break and close below this level, could see a test of the diagonal resistance line (GREEN) at R1140. If I was long (and again, sad to say…I’m not) this will be my stop-loss, with a breakthrough these levels most probably creating one hell of a hangover & a test of 26 February’s level of R1030. Investors should also monitor any excessive Rand movement.

On the upside, Thomson Reuter consensus target price for ANH is currently R1336, which indicate still some possible upside fundamentally. Should ANH finally break and close above these R1250 levels, September last years (2018) level of R1345 become my next target, which coincide with the consensus target prices.

Schalk Louw
As Portfolio Manager at PSG Wealth Old Oak and with over 20 years’ experience in the investment industry, Schalk has consistently delivered solid returns to his clients and has certainly become one of South Africa’s most well-known strategists. He started his career in 1994 at the stockbroking company, Huysamer Stals (later ABN Amro). He joined SMK Securities in 1997, (later became BoE Personal Stockbrokers) and was later appointed as director and branch manager. In 2001 he co-founded Contego Asset Management and managed the company as CEO up to March 2014, after which he joined PSG Wealth Old Oak. Schalk has also become a regular household name with investors, with his reports being published in many of the national press. He completed his MBA in 2008.

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