Look For A Pull Back In TWE
Since hitting an intra-day low of $14.55 on January 16th, shares of TWE have rallied over 20% to a high of $17.75 yesterday.
Upgrades from several analysts combined with lower tax rates in the USA have given the shares a strong boost.
However, in a recent preview to their half-yearly results, CEO Mike Clarke suggested that there will be a major overhaul to their US distribution network.
Early estimates are that these changes could lower earning by $47 million to $655 million in 2018.
In addition, internal momentum indicators are now showing an overbought condition above $17.00.
We suggest looking to buy TWE on a pull back into the $15.30 area.
Treasury Wine