BHF enters Golden Cross for the first time since April 11, 2018
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jun 11, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BHF finished Tuesday at 39.19 gaining $0.65 (1.69%) on high volume, notably outperforming the S&P 500 (-0.03%). Today's close at 39.19 marks the highest recorded closing price since May 10th. 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 11, 2019):
Tuesday's trading range has been $0.53 (1.35%), that's far below the last trading month's daily average range of $1.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BHF.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Bullish Spinning Top showed up on May 16th, BHF actually lost -2.50% on the following trading day.
The market managed to close above the 200-day moving average at 38.98 for the first time since May 9th. Prices are trading close to the key technical resistance level at 39.86 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, the stock has entered a so-called "Golden Cross" for the first time since April 11, 2018. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Its common bearish interpretation has been confirmed for Brighthouse Financial. Out of 13 times, BHF closed lower 61.54% 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 two trading days, showing a win rate of 61.54% with an average market move of -2.45%.