BF-B closes higher for the 3rd day in a row
Brown Forman Inc Class B (BF-B) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BF-B finished Thursday at 55.28 gaining $3.19 (6.12%), slightly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 53.06, the share confirmed its breakout through the prior session high after trading up to $2.69 above it intraday.
Daily Candlestick Chart (BF-B as at Mar 26, 2020):
Thursday's trading range has been $4.27 (8.11%), that's slightly below the last trading month's daily average range of $4.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BF-B.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 52.91 (now S1), which is likely to act as support going forward.
Though Brown Forman is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven 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 171 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 61.40% with an average market move of 0.51%.