BHF breaks below key technical support level
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Feb 06, 2020 | by Techniquant Editorial Team
BHF finished Thursday at 42.26 losing $0.28 (-0.66%), underperforming the S&P 500 (0.33%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BHF as at Feb 06, 2020):
Thursday's trading range has been $1.02 (2.37%), that's slightly 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.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on January 24th, BHF lost -3.51% on the following trading day.
Prices are trading close to the key technical support level at 41.56 (S1). Prices broke below the key technical support level at 42.45 (now R1), which is likely to act as resistance going forward.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 40.31.
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 could see further upside momentum should Brighthouse Financial manage to break out beyond. Trading close to December's high at 43.12 we might see further upside momentum if potential buy stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Belt-hold" stand out. Its common bearish interpretation has been confirmed for Brighthouse Financial. Out of 10 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 60.00% with an average market move of -5.65%.