BHF finds buyers at key support level
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
BHF finished the week 1.29% higher at 38.45 after edging lower $0.01 (-0.03%) today on low volume, but still slightly outperforming the S&P 500 (-0.16%). Trading up to $0.56 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BHF as at Jun 14, 2019):
Friday's trading range has been $0.71 (1.85%), that's below the last trading month's daily average range of $1.04. Weekly volatility is also lower, being 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 Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on May 10th, BHF lost -7.24% on the following trading day.
After trading down to 37.88 earlier during the day, the stock bounced off the key technical support level at 38.11 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 39.56 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Brighthouse Financial. Out of 131 times, BHF closed higher 61.83% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 49.62% with an average market move of 0.50%.