BF-B breaks below Thursday's low
Brown Forman Inc Class B (BF-B) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
BF-B finished the week -1.94% lower at 56.05 after losing $0.33 (-0.59%) today, significantly underperforming the S&P 500 (0.46%). Closing below Thursday's low at 56.08, the market confirmed its breakout through the previous session low after trading up to $0.18 below it intraday.
Daily Candlestick Chart (BF-B as at Jul 12, 2019):
Friday's trading range has been $0.60 (1.06%), that's far below the last trading month's daily average range of $0.93. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for BF-B.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bearish Short Candle showed up on December 12, 2018, BF-B actually gained 2.13% on the following trading day.
Prices are trading close to the key technical support level at 55.77 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 57.01 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 55.77 where further sell stops could get activated. With prices trading close to this year's high at 57.98, upside momentum might speed up should the share be able to break out to new highs for the year. As prices are trading close to July's low at 55.39, downside momentum could accelerate should Brown Forman mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Brown Forman. Out of 99 times, BF-B closed higher 57.58% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.62% with an average market move of 1.02%.