BHF closes lower for the 2nd day in a row
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BHF finished Tuesday at 37.95 losing $0.11 (-0.29%), but still slightly outperforming the S&P 500 (-0.34%). Trading $0.31 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 10th, BHF actually gained 1.31% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BHF as at Jul 16, 2019):
Tuesday's trading range has been $0.59 (1.55%), that's below the last trading month's daily average range of $1.06. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BHF. Prices continued to consolidate within a tight trading range between 37.06 and 38.52 where it has been caught now for the whole last trading week.
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. 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 37.52 (S1). The share found buyers again today around 37.75 for the third trading day in a row after having found demand at 37.68 in the prior session and at 37.76 two days ago.
Though Brighthouse Financial is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 38.52 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 37.68 where further sell stops could get triggered. Further buying might move prices higher should the market test June's nearby high at 39.56.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Brighthouse Financial. Out of 137 times, BHF closed higher 60.58% 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 59.12% with an average market move of 0.39%.