Last week certainly provided one significant trading day for $MNST as rumors proved to have some meat to them that $KO was taking a look under the hood for an acquisition.
For a quick look at what the action looked like, let’s view a Daily chart:
That candle with the REALLY long tail at the top is what I refer to as a “marshmallow on-a-stick” candle. There are some trapped longs above who are not real comfortable at the moment.
Since we now know that the 2 companies were in talks, I thought I would take a look at the Ratio chart to see what had been brewing there recently (if anything):
This ratio has been holding the test of the 50 day moving average quite well and looks to have a nice bottoming process working (on rising volume too). The 1st target is .900 and then .910 – and then it is anyone’s guess.