BHF stuck within tight trading range
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jun 06, 2019 | by Techniquant Editorial Team
BHF ended Thursday at 37.43 gaining $0.74 (2.02%), notably outperforming the S&P 500 (0.61%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BHF as at Jun 06, 2019):
Thursday's trading range has been $0.83 (2.25%), that's below the last trading month's daily average range of $1.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BHF. Prices continued to consolidate within a tight trading range between 36.37 and 38.05 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Tuesday, BHF actually lost -3.42% on the following trading day.
Prices are trading close to the key technical support level at 36.60 (S1). Prices are trading close to the key technical resistance level at 38.05 (R1).
Though Brighthouse Financial is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 38.05 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 36.37 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Brighthouse Financial. Out of 9 times, BHF closed lower 77.78% 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 six trading days, showing a win rate of 44.44% with an average market move of -0.49%.