BHF pushes through key technical resistance level
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jun 18, 2019 | by Techniquant Editorial Team
BHF ended Tuesday at 38.24 gaining $0.59 (1.57%) on low volume, outperforming the S&P 500 (0.97%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BHF as at Jun 18, 2019):
Tuesday's trading range has been $1.35 (3.57%), that's above the last trading month's daily average range of $1.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 37.56 and 38.96 where it has been caught now for the last three trading days.
Buyers managed to take out the key technical resistance level at 38.11 (now S1), which is likely to act as support going forward. After spiking up to 38.96 during the day, the share found resistance at the 200-day moving average at 38.89. The last time this happened on June 10th, BHF actually gained 1.69% on the following trading day. After having been unable to move lower than 37.56 in the prior session, the stock found buyers again around the same price level today at 37.61.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 37.56 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 200" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Brighthouse Financial. Out of 1 times, BHF closed higher 100.00% of the time on the next trading day after the market condition occurred.