BHF finds buyers again around 36.40
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jul 08, 2019 | by Techniquant Editorial Team
BHF finished Monday at 37.04 losing $0.06 (-0.16%), but still slightly outperforming the S&P 500 (-0.48%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BHF as at Jul 08, 2019):
Monday's trading range has been $0.92 (2.51%), that's slightly below the last trading month's daily average range of $1.09. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BHF. Prices continued to consolidate within a tight trading range between 36.03 and 37.52 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After trading down to 36.40 earlier during the day, the stock bounced off the key technical support level at 36.49 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 36.25 in the prior session, the market found buyers again around the same price level today at 36.40. The last time this happened on July 3rd, BHF gained 1.31% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 37.52 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 35.89 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Brighthouse Financial. Out of 136 times, BHF closed higher 60.29% 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 58.09% with an average market move of 0.38%.