Brown Forman Technical Analysis (NYSE:BF.A)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. Just by looking at the Brown Forman stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the BF.A stock chart which creates a trading signal.
You can view Simple Moving Average - SMA 20 day, 50 day & 100 day, Exponential Moving Average - EMA 20 day, 50 day & 100 day charts, and Bollinger Bands for Brown Forman. The technical analysis form of Brown Forman stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Brown Forman Moving Average
Moving averages help predict the price direction of BF.A stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The 20 day moving average of $53.46 is above the last closing price of $52.53 and the 50 day moving average of $53.62 is above the last closing price of $52.53. The 10 and 20 day periods can predict short term moving average trends.
Brown Forman Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Brown Forman. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $52.53 is in the lower range of Brown Forman bollinger bands.
Brown Forman Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps assess the stock price trend. Traders usually wait for a confirmed crossover signal before entering into a trading position. Divergence implies that the current stock price trend could come to an end, when the stock price diverges from MACD. The Brown Forman MACD indicator is below 0 indicating a bearish trend.
Brown Forman Relative Strength Index
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . 40.96 is the RSI value of BF.A stock.