Monster Beverage has been on a rollercoaster ride this year with some pretty negative press – attacks from possible buyout candidates and controversial use of the product. The chart reflects the sentiment of rather nervous investors and rather high implied volatility (understandable, given the circumstances). The technicals show a nice opportunity to get long here, with a higher high/low clearly shown on the chart. The stock has had some trouble with 60 lately, but the earnings come out this week could be the catalyst to get this over that level. Once we are past earnings (and above the trendline), we’re looking for the highs in the mid 60’s.
