In the past few months with the rise of Corona virus Diageos stock price has really taken a hit with profit losses for the leading spirit making company. Asia is in lockdown due to the virus and othewr consumers around the world are also suffering causing Diageo to take a real bad hit. However this stock is classed as defensive due the fact of even in hard times people generally seem to opt for alcohol or cigarettes etc it is rare to see huge movements to the downside like we are seeing so that is why i am predicting upside movement soon. With the weekly trend line
constantly tested over the past few years the long term bias definitely indicates strong bullish
Confluences for this trade
1.Weekly trend line
2. Multiple time frame
confirmation of bullish
3. Price is currently at a previous support level
and key area of price.
4.Defensive stocks RARELY see huge movements to the downside with exceptions of a global scare like we are seeing right now with the corona virus.
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