The Diageo share price continued the correction on Thursday, even as the company plans to build a new research and development facility in Shanghai, China.
The facility is the first of its kind and will deepen its involvement in the Chinese market by producing products that suit the consumer taste of this market. However, this did not stop investors from offering the stock this Thursday, as the correction from the uptrend that has lasted for six months continues.
The corrective decline on the Diageo share price stems from the retest of the previous all-time high at 3633, first seen in September 2019. While the Diageo share price is presently trading flat after two days of losses, the uptrend remains intact.
The outlook for the Diageo share price is drawn from the descending triangle pattern on the daily chart. A breakdown of the lower border of the triangle opens the door for a measured move towards 3313.0. This move needs to take out 3397.0 along the way to be actualized. A deeper correction could target 3251.0, with 3186 and 3077 also serving as additional targets to the south.
On the other hand, recovery on the Diageo share price needs to take out 3554.5 and 3644.0. A break of the latter sends the Diageo share price to new record highs, while invalidating the pattern in the process.
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