Stock Chart Analysis FMX
Fomento Economico Mexicano SAB (ADR) (Public, NYSE:FMX)
I’ve been calling FMX the most interesting stock in the world, mostly as a reference to the commercials for Dos Equis lager which is produced by the company. However, it seems that recently the stock has become interesting on its own merits with buy out speculation running rampant, namely from Heineken. As such FMX had a very sharp surge in early October as the rumors first emerged, and for the most part FMX has held on to those gains. FMX has been trading in a fairly narrow range over the past two months, finding support on each trip to the $42 area. It looks like FMX is starting to test a move back to the upper part of the range near $46-47 after the most recent pullback. FMX has been able to close back above its 20-day moving average the past two days after spending a couple weeks below the average. If FMX can clear and hold above last weeks high near $44.50 it could be worth a shot to the long side with a stop under the recent lows. One caveat to add is that there is always the possibility of any possible deals for the company not coming to fruition and thus possibly causing a gap lower. As such this may be a good candidate for put protection versus just a simple stop.
Good Trading,
Joey
