Whiskey Maker Slides On Earnings: Here's The Trade
InTheMoneyStocks.com | Jun 06, 2018 12:08PM ET
Brown Forman (NYSE:BFb) manufactures and distributes alcoholic beverages under the Jack Daniel's, Finlandia and other brand names. On Wednesday, the stock fell by 3.88 percent to $53.70 a share after reporting earnings. Traders should note that the stock is now trading below its important 50-day moving average, which puts it in a weak technical position on the charts.h3 My Targets/h3
There are still major support levels below that should be watched closely. First, there is $49, which is a major gap fill from December 5, 2017. Depending on how the stock reaches that level, it could be a major support area. The next big level is around $47.50, which is where the stock had a major breakout in late November 2017. My best-bet level is around $47.50. Remember that the institutional money often defends a prior breakout level when initially retested.
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