BHF runs into sellers around 38.65 for the third day in a row
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jun 24, 2019 | by Techniquant Editorial Team
BHF finished Monday at 38.12 edging higher $0.01 (0.03%) on low volume, slightly outperforming the S&P 500 (-0.17%). 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 24, 2019):
Monday's trading range has been $0.85 (2.24%), that's below the last trading month's daily average range of $1.01. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BHF. Prices continued to consolidate within a tight trading range between 37.61 and 38.98 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on May 6th, BHF actually lost -6.23% on the following trading day.
Prices are trading close to the key technical support level at 38.09 (S1). Brighthouse Financial ran into sellers again today around 38.65 for the third trading day in a row after having found sellers at 38.64 in the prior session and at 38.58 two days ago.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 38.98 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 37.69 where further sell stops might get activated. As prices are trading close to June's high at 39.56, upside momentum could speed up should the stock mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Brighthouse Financial. Out of 20 times, BHF closed lower 60.00% 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 65.00% with an average market move of -0.35%.