BF-B runs into sellers again around 71.92
Brown Forman Inc Class B (BF-B) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BF-B finished Thursday at 71.90 gaining $0.13 (0.18%), slightly outperforming the S&P 500 (0.11%). Today's close at 71.90 marks the highest recorded closing price ever. Trading up to $0.33 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BF-B as at Jan 23, 2020):
Thursday's trading range has been $0.87 (1.22%), that's slightly below the last trading month's daily average range of $0.87. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BF-B.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 72.00 (R1). After having been unable to move above 72.00 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 71.92.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 68.55. The last time this happened on November 29, 2019, BF-B lost -0.59% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 72.00 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Brown Forman. Out of 173 times, BF-B closed higher 56.65% 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 62.43% with an average market move of 0.67%.