Brown-Forman near Key Resistance Area

Published on Monday, 02 August 2010 04:28 Written by TradersHuddle Staff

New York, August 2nd (TradersHuddle.com) - Shares of Brown-Forman Corporation (NYSE:BF.B) are trading very close to calculated resistance at $65.05 with the current price action closing at just $63.21 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $56.21 and by the resistance level at $65.05, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Brown-Forman, as the stock is well above support, however, as the stock pulls back towards $56.21 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $65.05 then traders will get an opportunity to enter Brown-Forman stock by establishing a position as the stock moves to a higher range.