BHF breaks above 20-day moving average for the first time since February 24th
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BHF finished Thursday at 26.54 gaining $2.11 (8.64%), notably outperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BHF as at Mar 26, 2020):
Thursday's trading range has been $3.11 (12.43%), that's slightly below the last trading month's daily average range of $3.42. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BHF.
The share managed to close above the 20-day moving average at 24.96 for the first time since February 24th. When this moving average was crossed above the last time on February 4th, BHF gained 5.27% on the following trading day. After having been unable to move above 26.78 in the previous session, Brighthouse Financial ran into sellers again around the same price level today, failing to move higher than 27.13.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Brighthouse Financial. Out of 144 times, BHF closed lower 51.39% of the time on the next trading day after the market condition occurred.