BHF pushes through key technical resistance level
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jul 03, 2019 | by Techniquant Editorial Team
BHF finished Wednesday at 36.62 gaining $0.47 (1.3%), outperforming the S&P 500 (0.77%) ahead of tomorrow's Independence Day market holiday. 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 Jul 03, 2019):
Wednesday's trading range has been $0.76 (2.09%), that's slightly below 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 slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BHF.
After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle.
Buyers managed to take out the key technical resistance level at 36.49 (now S1), which is likely to act as support going forward. After having been unable to move above 36.84 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 36.93. The last time this happened on June 24th, BHF lost -11.70% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the nearby swing low at 35.89 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Brighthouse Financial. Out of 39 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 58.97% with an average market move of -2.21%.