BHF closes below its opening price unable to hold early session gains
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jul 01, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BHF ended Monday at 37.01 gaining $0.32 (0.87%), slightly outperforming the S&P 500 (0.77%). Trading $0.69 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 25th, BHF actually gained 2.08% on the following trading day. 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 Jul 01, 2019):
Monday's trading range has been $1.27 (3.4%), that's slightly above the last trading month's daily average range of $1.12. 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.
Prices are trading close to the key technical support level at 36.60 (S1). After spiking up to 38.02 during the day, the stock found resistance at the 20-day moving average at 37.42.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
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 20" stand out. Its common bearish interpretation has been confirmed for Brighthouse Financial. Out of 13 times, BHF closed lower 61.54% 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 10 trading days, showing a win rate of 76.92% with an average market move of -3.75%.