Anheuser-Busch InBev (EBR:ABI) has been trapped below MA 200 for extended periods. The crisis in Russia complicates the situation as the company suspends trade in the country. BUD will also be forfeiting income from its partners in Russia.
Beyond Russia, AB InBev sees opportunities for growth in emerging markets, including China where the demand for alcoholic drinks is on the rise and tastes are changing. Consequently, the company still considers that it will report significant growth in revenues and profits in 2022.
Consumption of alcoholic drinks is just gaining from the pandemic slump. The current economic downturn is unlikely to falter the growth of AB InBev, making it a defensive stock to consider.
AB InBev trapped below MA 200
Source – TradingView
AB InBev has been trapped below the 200-days moving average. The share price has a support level of $40. The short-term moving averages are all indicative of a bearish trend.
However, the 10-day moving average is attempting to break away from the 20-day average. The RSI has turned upwards, serving as an early signal for price appreciation. The MACD is trading at the oscillator, sending missed signals on the momentum that the company is likely to take.
While we consider the stock currently undervalued, traders should wait for a little longer for the buy signal to be confirmed.
Summary
AB InBev is trading at prices below the 200-days moving average. The market undervalues the stock. Traders would need to wait a little longer for the buy to be confirmed.
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