BHF pushes through key technical resistance level
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Feb 03, 2020 | by Techniquant Editorial Team
BHF finished Monday at 39.51 gaining $0.61 (1.57%) on low volume, outperforming the S&P 500 (0.73%). Closing above Friday's high at 39.50, the share confirmed its breakout through the previous session high after trading up to $0.65 above it intraday.
Daily Candlestick Chart (BHF as at Feb 03, 2020):
Monday's trading range has been $1.15 (2.95%), that's far above the last trading month's daily average range of $0.86. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BHF.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 39.42 (now S1), which is likely to act as support going forward. After spiking up to 40.15 during the day, Brighthouse Financial found resistance at the 100-day moving average at 39.56. The last time this happened on January 8th, BHF actually gained 2.42% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the close-by swing high at 40.37 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 38.77 where further sell stops could get triggered. With prices trading close to this year's low at 37.63, downside momentum might speed up should the stock break out to new lows for the year.
Among the eight 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 20 times, BHF closed lower 65.00% 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 60.00% with an average market move of -1.77%.