BF-B closes higher for the 2nd day in a row
Brown Forman Inc Class B (BF-B) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BF-B ended the month -3.44% lower at 63.66 after gaining $0.42 (0.66%) today, underperforming the S&P 500 (1.54%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BF-B as at Jun 30, 2020):
Tuesday's trading range has been $1.27 (2.01%), that's below the last trading month's daily average range of $2.20. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BF-B.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 8th, BF-B gained 1.81% on the following trading day.
Prices are trading close to the key technical resistance level at 64.50 (R1).
Brown Forman shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test May's nearby low at 60.28.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Brown Forman. Out of 335 times, BF-B closed higher 50.75% 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 57.01% with an average market move of 0.70%.