BHF closes below its opening price unable to hold early session gains
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jul 10, 2019 | by Techniquant Editorial Team
BHF finished Wednesday at 37.32 losing $0.25 (-0.67%), notably underperforming the S&P 500 (0.45%). Trading $0.54 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. 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 10, 2019):
Wednesday's trading range has been $0.89 (2.38%), that's slightly below the last trading month's daily average range of $1.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BHF.
After moving higher in the prior session, Brighthouse Financial closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on May 22nd, BHF lost -4.37% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 36.49 (S1).
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for Brighthouse Financial. Out of 11 times, BHF closed lower 54.55% 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 54.55% with an average market move of -1.94%.