BHF runs into sellers around 29.99 for the forth day in a row
Brighthouse Financial Inc. (BHF) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
BHF finished the week 8.13% higher at 28.85 after losing $0.93 (-3.12%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. 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 May 22, 2020):
Friday's trading range has been $1.38 (4.6%), that's below the last trading month's daily average range of $1.91. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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. Regardless of a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on May 12th, BHF lost -7.53% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 28.61 earlier during the day, the share bounced off the key technical support level at 28.67 (S1). The failure to close below the support might increase that levels importance as support going forward. Brighthouse Financial was sold again around 29.99 after having seen highs at 30.00, 30.00 and 30.10 in the last three trading sessions. Obviously there is something going on at that level.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 30.10 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 28.02 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Its common bearish interpretation has been confirmed for Brighthouse Financial. Out of 91 times, BHF closed lower 57.14% 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 52.75% with an average market move of -1.60%.