BHF breaks below 20-day moving average for the first time since June 6th
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jun 25, 2019 | by Techniquant Editorial Team
BHF ended Tuesday at 33.66 tanking $4.46 (-11.7%) on high volume, notably underperforming the S&P 500 (-0.95%). This is the biggest single-day loss in over a year. The last time we've seen such an unusually strong single-day loss on May 13th, BHF actually gained 3.64% on the following trading day. Today's close at 33.66 marks the lowest recorded closing price since January 11th. Trading $1.97 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BHF as at Jun 25, 2019):
Tuesday's trading range has been $3.53 (10.35%), that's far above the last trading month's daily average range of $1.15. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BHF.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
The market closed below the 20-day moving average at 37.56 for the first time since June 6th.
Crossing below the lower Bollinger Band for the first time since May 13th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 37.56 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Brighthouse Financial. Out of 6 times, BHF closed higher 66.67% 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 two trading days, showing a win rate of 83.33% with an average market move of 1.44%.