BF-B breaks below Tuesday's low
Brown Forman Inc Class B (BF-B) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BF-B finished Wednesday at 77.94 losing $1.02 (-1.29%), underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 78.77, the market confirmed its breakout through the prior session low after trading up to $1.10 below it intraday.
Daily Candlestick Chart (BF-B as at Sep 16, 2020):
Wednesday's trading range has been $1.79 (2.26%), that's slightly below the last trading month's daily average range of $1.95. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BF-B.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 78.39 (now R1), which is likely to act as resistance going forward. The last time this happened on August 5th, BF-B actually gained 0.15% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Brown Forman. Out of 268 times, BF-B closed higher 58.21% 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 60.07% with an average market move of 0.98%.