BHF unable to break through key resistance level
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jun 07, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BHF finished the week 6.96% higher at 37.96 after gaining $0.53 (1.42%) today, slightly outperforming the S&P 500 (1.05%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 37.45, Brighthouse Financial confirmed its breakout through the previous session high after trading up to $0.61 above it intraday.
Daily Candlestick Chart (BHF as at Jun 07, 2019):
Friday's trading range has been $0.81 (2.17%), that's below the last trading month's daily average range of $1.18. 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.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern.
The share managed to close back above the 20-day moving average at 37.46. Unable to break through the key technical resistance level at 38.05 (R1), the stock closed below it after spiking up to 38.06 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on May 30th, BHF lost -4.47% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Brighthouse Financial. Out of 75 times, BHF closed lower 57.33% 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 10 trading days, showing a win rate of 62.67% with an average market move of -1.98%.