BHF rallies $4.49 (10.66%) after posting strong earnings
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Feb 11, 2020 | by Techniquant Editorial Team
BHF ended Tuesday at 46.60 surging $4.49 (10.66%) on high volume, strongly outperforming the S&P 500 (0.17%) following Monday's earnings report. This is the biggest single-day gain in over 12 months. The last time we've seen such an unusually strong single-day gain on February 5th, BHF actually lost -0.66% on the following trading day. Today's close at 46.60 marks the highest recorded closing price since June 11, 2018.
Daily Candlestick Chart (BHF as at Feb 11, 2020):
BHF reported earnings of $2.46 per share after Monday's market close. With analysts having expected an EPS of $2.32, Brighthouse Financial Inc. surpassed market expectations by 6.0%. The company's last earnings report was released on Nov. 4, 2019, when Brighthouse Financial Inc. reported earnings of $2.33 per share surpassing market expectations by 5.0%.
Tuesday's trading range has been $3.75 (8.43%), that's far above the last trading month's daily average range of $1.04. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BHF.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since February 5th, 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 40.94 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.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Brighthouse Financial. Out of 5 times, BHF closed lower 80.00% 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 100.00% with an average market move of -5.75%.