Constellation Brands (STZ) shares jumped in premarket trading Tuesday after Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) disclosed a new investm🐼ent in the beer and spirits maker.

According to a 澳洲幸运5官方开奖结果体彩网:Form 13-F regulatory filing released on Friday, the 澳洲幸运5官方开奖结果体彩网:Omaha-based conglomerate purchased 5.6 million shares of Constellation Brands 澳洲幸运5官方开奖结果体彩网:in the fourth quarter, with the stake having a market value of $1.24 billion as of Dec. 31 last year.

Some of the alcoholic beverage producer’s better-known wine brands include Meiomi, Robert Mondavi and Kim Crꦚawford, while its Modelo Especial lager surpassed Bud Light in 2023 as the top selling beer in the U.S.

Constellation Brands shares were down 26% since the start of the year through Friday’s close amid softening consumer demand and concerns that 澳洲幸运5官方开奖结果体彩网:potential tariffs on Mexican goods could force the company to raise prices. The stock was🅷 up nearly 7% at $174 in recent premark🐬et trading.

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals on the Constellation Brands chart and identify key price levels worth watching out for♉.

Falling Wedge Breakout

Since the 澳洲幸运5官方开奖结果体彩网:50-day moving average (MA) crossed below the 200-day MA to flash a 澳洲幸运5官方开奖结果体彩网:death cross in August last year, Constellation Brands shares have trended sharply lower, with the price more recently forming a 澳洲幸运5官方开奖结果体彩网:falling wedge chart pattern.

While the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) signals bearish price momentum with a reading below the 30 threshold, the indicator also points to oversold conditions, increasing the likelihood of a potential bounce.🧜

Indeed, the stock looks set to break out above the pattern's upper trendline in Tuesday’s trading session, potentially paving the way for an upside reversal.

Let’s apply the 澳洲幸运5官方开奖结果体彩网:Fibonacci retracement tool from the stock’s April 2024 high to February 2025 low, helping us locate several key overhead areas where the shares could run into selling pressure. We’ll also identify a key 澳洲幸运5官方开奖结果体彩网:support level worth watching.

Key Overhead Fibonacci Levels to Track

The first overhead area to watch sits at the 23.6% Fib level around $187. This location on the chart may also provide 澳洲幸运5官方开奖结果体彩网:resistance near the upper range of a brief 澳洲幸运5官方开奖结果体彩网:consolidation period last m♑onth that formed within the falling wedge pattern.

Buying above this level could propel a move up to the 38.2% Fib level near $204, an area on the chart that additionally finds a 澳洲幸运5官方开奖结果体彩网:confluence of resistance from the downward sloping 50-day MA and the prominent January gap’s opening price.

Further upside may fuel a move up to around $218 near the closely watched 50% Fib level. Investors could view this area on the chart as a 澳洲幸运5官方开奖结果体彩网:profit-taking region near a period of early-January consolidation that precﷺeded last month’s gap lower.

A longer-term share price recovery opens the door for a rally up to the 61.8% Fib level around $231. Investors may look for 澳洲幸运5官方开奖结果体彩网:exit points near a crucial 澳洲幸运5官方开奖结果体彩网:horizontal line sitting just above this area that connects a range of co🍰mparable trading action on the chart from November 2023 to December last year.

Important Support Level Worth Watching

Finally, during 澳洲幸运5官方开奖结果体彩网:sell-offs, investors should keep a close eye on the $160 level. Bargain hunters may seek buying opportunities near this month’s low, which also marks the bottom of the falling wedge pattern and the stock’s lowest tradinജg level since May♛ 2020.

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As of the date this article was written, the author does not own any of the above securities.