BHF dominated by bulls lifting the market higher throughout the day
Brighthouse Financial Inc. (BHF) Technical Analysis Report for May 21, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BHF ended Tuesday at 38.74 gaining $1.32 (3.53%) on low volume, notably outperforming the S&P 500 (0.85%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 38.01, the stock confirmed its breakout through the prior session high after trading up to $1.01 above it intraday.
Daily Candlestick Chart (BHF as at May 21, 2019):
Tuesday's trading range has been $1.46 (3.87%), that's slightly above the last trading month's daily average range of $1.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BHF.
One bullish candlestick pattern matches today's price action, the White Candle.
Brighthouse Financial managed to close back above the 100-day moving average at 38.05. When this moving average was crossed above the last time on May 16th, BHF actually lost -2.50% on the following trading day. Unable to break through the key technical resistance level at 39.00 (R1), the market closed below it after spiking up to 39.02 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Brighthouse Financial. Out of 36 times, BHF closed lower 61.11% 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 10 trading days, showing a win rate of 55.56% with an average market move of -2.05%.