If we look at the Constellation Brands (NYSE:STZ) Daily chart, we can see that the stock has trended downward for the past few months after hitting an all-time high of $241 in May.
At the time of writing, the stock traded at $211, hovering in a month-long channel between support of $208 and resistance of $219.
The company had scheduled a third-quarter earnings announcement yesterday on Oct. 6. Even though it missed the EPS forecasts, the earning expectations were surpassed, but there wasn’t any significant market reaction.
Today we could expect a pattern continuation and a fall near or below the $208 support level.
If it manages to hold above the current price range of $211, then a case can be made for moving towards the $215 price level.
