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Keurig Green Mountain Getting Roasted: A Technical Look

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Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Keurig Green Mountain Inc (NASDAQ: GMCR) shares were trading lower by $4 at $90.26 in Monday's session. The post-earnings shellacking continues after the issue shed almost $9 in Friday's session, declining from $103.28 to $94.26.

Typical of a weak stock, it could not clear Friday's close ($94.26), only reaching $94.10 before tumbling under $90.00 and reaching $89.89 so far in today's session. It has been one year since investors last saw shares at this low of level, when it bottomed at $90.08 last May on its way to the all-time high of $158.87 that was made in November.

Much of that was predicated on the sizable investment from Coca-Cola (NYSE: KO), fueling speculation the soda-maker may be interested in acquiring the entire company. As that speculation has dwindled, so has the share price of the issue.

It should be noted that last April and May, Keurig posted several lows in the $90 area before gathering the momentum to clear the $100 level. With this being the first day at this level, long-term investors will be keeping a close eye on the price in order to determine if the former support level will again be just that.

Posted-In: Technicals Intraday Update Movers Trading Ideas

 

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