BHF closes higher for the 2nd day in a row
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jul 05, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BHF ended the week 1.12% higher at 37.10 after gaining $0.48 (1.31%) today, strongly outperforming the S&P 500 (-0.18%). Trading up to $0.71 lower after the open, Brighthouse Financial managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 27th, BHF gained 4.74% 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 05, 2019):
Friday's trading range has been $1.27 (3.44%), that's slightly above the last trading month's daily average range of $1.09. 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 higher than usual for BHF.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 36.25 earlier during the day, the market bounced off the key technical support level at 36.49 (S1). The failure to close below the support might increase that levels significance as support going forward. After spiking up to 37.52 during the day, the stock found resistance at the 20-day moving average at 37.31.
Although 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 nearby swing high at 38.03 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 35.89 where further sell stops might get activated.
Among the seven 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 14 times, BHF closed lower 64.29% 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 71.43% with an average market move of -3.75%.