BF-B runs into sellers again around 56.10
Brown Forman Inc Class B (BF-B) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
BF-B finished Tuesday at 55.91 edging higher $0.08 (0.14%), slightly outperforming the S&P 500 (-0.34%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BF-B as at Jul 16, 2019):
Tuesday's trading range has been $0.65 (1.16%), that's below the last trading month's daily average range of $0.83. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for BF-B.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on May 30th, BF-B actually lost -2.06% on the following trading day.
Prices are trading close to the key technical resistance level at 56.23 (R1). After having been unable to move above 56.18 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 56.10.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to July's low at 55.39, downside momentum might speed up should the market mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for Brown Forman. Out of 57 times, BF-B closed higher 56.14% 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 63.16% with an average market move of 1.49%.