BHF runs into sellers again around 42.33
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Feb 10, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BHF finished Monday at 42.11 losing $0.10 (-0.24%), underperforming the S&P 500 (0.73%). Trading up to $0.35 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BHF as at Feb 10, 2020):
Monday's trading range has been $0.63 (1.5%), that's below the last trading month's daily average range of $0.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 Bullish Spinning Top. The last time a Bullish Spinning Top showed up on February 4th, BHF gained 5.27% on the following trading day.
Prices are trading close to the key technical support level at 41.56 (S1). Prices are trading close to the key technical resistance level at 42.45 (R1). After having been unable to move above 42.28 in the prior session, Brighthouse Financial ran into sellers again around the same price level today, failing to move higher than 42.33.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 43.00 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 41.46 where further sell stops might get triggered. 2019's high at 44.12 is within reach and we could see further upside momentum should the stock 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 six 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 186 times, BHF closed higher 59.14% 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 seven trading days, showing a win rate of 53.76% with an average market move of 0.34%.