BHF breaks above 50-day moving average for the first time since June 11th
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BHF finished the week 3.34% higher at 38.34 after gaining $0.53 (1.4%) today, outperforming the S&P 500 (0.46%). Today's close at 38.34 marks the highest recorded closing price since June 20th. Trading up to $0.26 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price.
Daily Candlestick Chart (BHF as at Jul 12, 2019):
Friday's trading range has been $0.73 (1.92%), that's 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 slightly higher than usual for BHF.
The market managed to close above the 50-day moving average at 37.85 for the first time since June 11th. When this moving average was crossed above the last time on June 11th, BHF actually lost -1.96% on the following trading day. After spiking up to 38.49 during the day, Brighthouse Financial found resistance at the 200-day moving average at 38.45.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Further buying could move prices higher should the market test June's close-by high at 39.56.
Among the five 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 40 times, BHF closed lower 60.00% 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 57.50% with an average market move of -2.21%.