BHF breaks below key technical support level
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jun 19, 2019 | by Techniquant Editorial Team
BHF ended Wednesday at 38.00 losing $0.24 (-0.63%), underperforming the S&P 500 (0.3%). Trading $0.47 higher after the open, Brighthouse Financial was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, BHF actually gained 1.57% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BHF as at Jun 19, 2019):
Wednesday's trading range has been $1.12 (2.91%), that's slightly above the last trading month's daily average range of $1.06. 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 broke below the key technical support level at 38.11 (now R1), which is likely to act as resistance going forward. The market ran into sellers again today around 38.98 for the third trading day in a row after having found sellers at 38.96 in the previous session and at 38.83 two days ago.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the nearby swing low at 37.56 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Its common bearish interpretation has been confirmed for Brighthouse Financial. Out of 117 times, BHF closed lower 55.56% 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 three trading days, showing a win rate of 52.99% with an average market move of -1.98%.