Brown Forman Corp Stumbles After Earnings, Watch This Level

President & CEO Chief Market Strategist at IntheMoneyStocks.com • Jun 9, 2021 at 1:03 PM EDT

Traders should now watch the $68.50 area for very strong chart support. This is where the stock reversed higher from a sharp decline in late March 2021.

Leading spirit and wine maker, Brown Forman Corp (BF-B), is falling sharply after reporting earnings that failed to impress Wall Street. The maker of Jack Daniel’s whiskey is trading lower by 5.26% to $475.46 a share. Brown Forman Corp (BF-B ) stock is now breaking below its important 200-day moving average. This puts the stock in a weak technical position on the charts and often indicates lower stock prices ahead.

Traders should now watch the $68.50 area for very strong chart support. This is where the stock reversed higher from a sharp decline in late March 2021. Often, prior reversals will be very strong support when they are initially retested. There is also a major retrace level around this support area that should add to the strength of the support level. I will be watching this area for a potential long side trade in Brown Forman Corp (BF-B) stock.

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