BF-B closes lower for the 2nd day in a row
Brown Forman Inc Class B (BF-B) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BF-B ended the week -2.32% lower at 64.78 after losing $0.87 (-1.33%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.66 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, BF-B actually gained 2.35% on the following trading day.
Daily Candlestick Chart (BF-B as at May 22, 2020):
Friday's trading range has been $1.65 (2.52%), that's below the last trading month's daily average range of $1.99. 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.
After trading down to 64.45 earlier during the day, the market bounced off the key technical support level at 64.60 (S1). The failure to close below the support could increase that levels significance as support going forward. Brown Forman closed below the 20-day moving average at 64.86 for the first time since April 1st.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the close-by swing low at 64.18 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Brown Forman. Out of 467 times, BF-B closed higher 59.53% 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 58.46% with an average market move of 0.69%.