BHF rises to highest close since November 9, 2018
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BHF ended Wednesday at 41.38 gaining $0.70 (1.72%), strongly outperforming the S&P 500 (0.3%). Today's close at 41.38 marks the highest recorded closing price since November 9, 2018. Trading up to $0.79 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, BHF gained 13.95% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BHF as at Feb 13, 2019):
Wednesday's trading range has been $1.40 (3.42%), that's slightly above the last trading month's daily average range of $1.13. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BHF.
Brighthouse Financial managed to close above the 200-day moving average at 41.20 for the first time since March 26, 2018.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 36.94.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to December's high at 41.86 we might see further upside momentum if potential buy stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Brighthouse Financial. Out of 24 times, BHF closed lower 58.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after four trading days, showing a win rate of 54.17% with an average market move of -2.01%.