BHF closes within previous day's range
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Feb 12, 2020 | by Techniquant Editorial Team
BHF ended Wednesday at 46.03 losing $0.57 (-1.22%) on high volume, significantly underperforming the S&P 500 (0.65%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BHF as at Feb 12, 2020):
Wednesday's trading range has been $1.54 (3.28%), that's above the last trading month's daily average range of $1.08. 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 6th, BHF lost -0.12% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 41.24.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two 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 39 times, BHF closed higher 53.85% 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 56.41% with an average market move of 0.78%.