Review
On September 1, 2016, when Craft Brew Alliance (BREW) was trading at $19.41, we said there was considerable downside risk. BREW fell nearly -40%.
On April 7, 2017, we indicated that the downside had effectively run its course after falling to $13.15. BREW increased in price from that point forward.
On December 16, 2017, we highlighted a downside pattern that seemed likely from the price of $19.20. That pattern has finally played out.
Today
Many questions remain about the direction of BREW. One element is certain, our reasoned assessment in real time on the stock. Below is the pattern that has played out and will likely not be repeated going forward. This means that it would be absurd to expect minimal downside risk and retest of the prior high from the current level at $9.69.
Speculators should be willing to lose it all and watch the stock decline to $7.11 and $5.34. However, in spite of that warning, the 1,2,3 & 4 pattern has been successfully replicated as outline in the December 16, 2017 article, suggesting a temporary low has been achieved, for now.