BHF snaps to lowest close since July 12, 2017
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BHF ended the week -14.38% lower at 34.47 after losing $1.35 (-3.77%) today on high volume, strongly underperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 34.47 marks the lowest recorded closing price since July 12, 2017. Trading $0.82 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, BHF lost -4.67% on the following trading day. Closing below Thursday's low at 35.26, the market confirmed its breakout through the previous session low after trading up to $0.99 below it intraday.
Daily Candlestick Chart (BHF as at Dec 07, 2018):
Friday's trading range has been $2.36 (6.59%), that's far above the last trading month's daily average range of $1.45. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for BHF.
One bearish candlestick pattern matches today's price action, the Black Candle.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 39.59.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Brighthouse Financial. Out of 12 times, BHF closed higher 50.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 91.67% with an average market move of 24,166.90%.