Brown-Forman (BF.B) is one of the largest U.S. owned companies in the spirits and wine business. BF is based in Louisville, Kentucky but today with the California wild fires and the destruction of some properties in Northern California's wine country, interest has centered on BF.
Let's check out the charts and indicators for BF and see if things are looking bullish or bearish.
In this daily bar chart of BF, below, we can see that prices have moved sideways for the past five weeks. The short-term price movement may be neutral but BF is above the rising 50-day moving average line and the upward sloping 200-day average line. The On-Balance-Volume (OBV) line has been moving sideways the past five weeks but it is up from its early August low. The MACD oscillator is pointed down but the two moving averages that make up this indicator are narrowing towards a possible bullish crossover.
In this weekly bar chart of BF, below, we can see a rounded bottom formation from the middle of 2015. A weekly close above $56 looks like it will complete the pattern. Prices are above the rising 40-week moving average line. The weekly OBV line made a similar rounded pattern in 2016 but it needs to confirm the price action with a new high of its own. The weekly MACD oscillator is pointed higher in a bullish mode.
In this Point and Figure chart of BF, below, we can see a large accumulation pattern. If we ignore much of the quick spike higher to $59.23 and the quick decline -- $53.09 looks like a breakout level. This chart projects and upside price target of $68.40.
Bottom line -- will BF lose the production of any wineries? I don't know the answer to that but I can say that right now the charts are bullish and I would go long BF on a weekly close above $56 risking below $53 and looking for gains to the mid to upper $60's.