A gin & tonic is clearly one of the greatest inventions known to mankind, with or without tonic water from Fever-Tree Drinks. It will be interesting to see whether the company’s latest premium cola can catch the investor zeitgeist in the same way.
Fevertree Drinks (FEVR): Above The 50 Day Line Targets 900p
The overwhelming takeaway on the daily chart of Fevertree Drinks is of a stock which has not only been in an uptrend for the bulk of its 18 months plus on the market, but which has also been a relatively non-volatile and “safe” pair of hands. This is somewhat surprising. On the face of it, until the advent of the premium cola concept, the company had been something of a “one trick pony” albeit an entity which has successfully reinvented its own particular wheel. But at least no one can deny the business model to date has been easy to understand, and captured the imagination. As far as the technicals are concerned, the stock is in a rising trend channel which can be drawn in from as long ago as February. The floor of the channel has its support line backed by the 50 day moving average. Therefore, while there is no end of day close back below this notional double support at 670p, one would be shooting for a top of channel target as high as 900p over the next 1-2 months.