BF.B - Oversold Technicals flashing for this Alcohol Company

Jan 12

Hi guys. Technicals are looking like Oversold in my opinion for BF.B (Brown Forman Inc.)
Note this is for educational purpose only. Always do your own due diligence when taking trades.

So on the 1 week timeframe (Macro look). BF.B has been on the downtrend since August 2020.

Signs in my opinion show a slowdown and a consolidation zone forming. Which could also indicate potential bottoming of this stock.

We hit the $25.60 - 26.60 in June 2025. Then had a run up to around $31.00, hitting it twice. Now we are back down in the 25.60 - 26.60 zone.

This could be a double bottom. If the $25.60 - 26.60 zone holds as Support it maybe more likely.

There are also signs of Indicator Price Divergence where Price is in a downtrend but Indicators are in an Uptrend. This usually hints at price reflecting indicators so eventually price would move up to reflect indicator being in an Uptrend as well.

This is seen in the RSI and MACD indicators.

Volume and further Momentum indicators still show that this stock is still trying to figure itself out and momentum has not yet entered.

I would like to see A Bullish Stoch RSI cross with MACD flipping Green with clear movement upwards towards 0 level.

This would be key for taking positions as you don't want to enter a position only to hold if it continues lower. Clear signs are needed.

Another trade set up would be to take positions when there is a Consolidation pattern breakout with confirmation.

Jan 12

Trade active

1 Day looking promising as well. I would wait for STOCH RSI to Cross Above 20 level and MACD to cross Bullish with Green Bars. These 2 indicators are Momentum indicators and could bring in the necessary Momentum for BF.B to move back towards Upper Border of Consolidation Pattern at around $31.00.

Jan 17

Note

Note that 1 Day indicator confirmations is a potential trade setup for the short term. And most likely won't influence Macro movements. Thats more for larger timeframes. Why i bring this up is due to the fact that we maybe in a Consolidation range or Rectangle pattern. And alot more technical developments need to happen especially in Macro timeframes for us to break above or even below this range. Which is the more important move. Think of consolidation patterns as a zone where Pressure is being built, like a spring being cocked back if i may use such analogue. It being a chart pattern, trading such patterns you need confirmation of breakout to play such moves.

Jan 17

Note

Heres the Consolidation zone again.


Note the occurence of such pattern after Price DECLINES.


We need to keep an EYE on this consolidation pattern in order to assess if itll be a Continuation pattern or a Reversal pattern. Continuation pattern meaning that price action will breakout below and continue further DECLINE. Reversal being that a breakout happens Above the pattern and price begins to move UP.

On the Macro timeframes, this is what you want to keep an eye on to ride bigger trend moves with potential larger % moves.

Jan 20

Note

For Potential Inter-Rectangle Pattern trade, following development presenting itself on 1 Day.


We are looking for hints of a potential rally to the upper border of the Rectangle pattern or Consolidation Zone.

If Todays Daily candle closes as it is with subsequent Daily candle closes this week above the Wick of todays candle. Itll be a good sign for potential continuation of prices moving higher above 27.46.

Jan 22

Note

POsitive technicals on 1 Day for BF.B.
POtential breakout out of a Ascending Triangle pattern. Remember if you trade it look for a confirmation of break out with a test as Support.

MACD flaring up to Bullish Momentum. RSI showing promising higher high print.

INdicators need to continue there Bullish patterns.