BHF climbs to highest close since December 17, 2019
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Feb 05, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BHF finished Wednesday at 42.54 surging $2.13 (5.27%), significantly outperforming the S&P 500 (1.13%). This is the biggest single-day gain in over 11 months. The last time we've seen such an unusually strong single-day gain on December 12, 2019, BHF gained 1.22% on the following trading day. Today's close at 42.54 marks the highest recorded closing price since December 17, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (BHF as at Feb 05, 2020):
Wednesday's trading range has been $1.33 (3.22%), that's far above the last trading month's daily average range of $0.89. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BHF.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 42.45 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since November 7, 2019, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 40.12 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 44.12 is within reach and we might see further upside momentum should the stock manage to break out beyond. Trading close to December's high at 43.12 we could see further upside momentum if potential buy stops at the level get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Brighthouse Financial. Out of 37 times, BHF closed higher 56.76% 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 four trading days, showing a win rate of 56.76% with an average market move of 0.54%.