BHF breaks back below 20-day moving average
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jun 05, 2019 | by Techniquant Editorial Team
BHF finished Wednesday at 36.69 losing $1.30 (-3.42%), notably underperforming the S&P 500 (0.82%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 36.72, Brighthouse Financial confirmed its breakout through the prior session low after trading up to $0.33 below it intraday.
Daily Candlestick Chart (BHF as at Jun 05, 2019):
Wednesday's trading range has been $1.66 (4.38%), that's above the last trading month's daily average range of $1.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BHF.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 36.39 earlier during the day, the stock bounced off the key technical support level at 36.60 (S1). The failure to close below the support might increase that levels importance as support going forward. The share closed back below the 20-day moving average at 37.69. After having been unable to move above 38.00 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 38.05. The last time this happened on Monday, BHF actually gained 5.85% on the following trading day.
Though BHF 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 nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Its common bearish interpretation has been confirmed for Brighthouse Financial. Out of 20 times, BHF closed lower 60.00% 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 60.00% with an average market move of -0.79%.