The technical picture of the Molson Coors Beverage Co Class B (NYSE: TAP) stock on our 4-hour chart shows that, overall, the share price is on a decline and continues to trade below a short-term tentative downside resistance line drawn from the high of May 31st. That said, yesterday, the stock found support near the area between the 50.04 and 50.30 levels, marked by the lowest point of May and the low of June 13th respectively. Although there are indications for a further slide, we would prefer to wait for a break below the above-mentioned support area first.
A drop below the 50.04 hurdle would confirm a forthcoming lower low, potentially opening the door towards lower levels. Such a move might temporarily scare off some buyers from the arena and the stock could move to the 49.12 zone, marked by the lowest point of March. That said, if that zone is only seen as a temporary obstacle on the way lower, a further slide may bring TAP to the 47.64 hurdle, or to the 47.20 level, marked by the lows of February 24th and January 28th respectively.
The RSI is currently flat but continues to run below 50. The MACD is also flat but remains below zero and the signal line. The two oscillators still show negative price momentum, which supports the above-mentioned scenario.
In order to get comfortable with the upside, we would prefer to wait for a break of the aforementioned downside line. Such a move may signal a change in the direction of the current trend. TAP could then get pushed to the high of June 8th, at 54.91, where a temporary hold-up might occur. However, if the buyers remain in control, the next potential target could be the 56.01 hurdle, or the 56.94 level, marked by the highest point of May.
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