Brown-Forman Had a Bearish Engulfing Candle

Published on Thursday, 02 September 2010 01:15 Written by TradersHuddle Staff

New York, September 2nd (TradersHuddle.com) - Shares of Brown-Forman Corporation (NYSE:BF.B) ended the trading session lower by $2.77 or -4.52% from its previous close. Brown-Forman's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Brown-Forman Corporation (NYSE:BF.B) manufactures, bottles, imports, exports, and markets alcoholic beverage. It offers consumer beverage alcohol products, including Tennessee, Canadian, and Kentucky whiskeys; Kentucky bourbon; tequila; vodka; liqueurs; California sparkling wine; table wine; and ready-to-drink products. The company provides its products under mnay brands, including Jack Daniel's Tennessee Whiskey, Herradura Tequila, Finlandia Vodka, Sonoma-Cutrer Wines, el Jimador Tequila, and Woodford Reserve Bourbon. and Fetzer Wines band names. Brown-Forman sell its products worldwide and is based in Louisville, Kentucky.

Brown-Forman's current stock range is defined by calculated support defined at $59.99 and by the resistance level at $65.05, which should be used by traders planning their trades.

Traders wanting to establish a position in Brown-Forman stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Brown-Forman shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: