BHF finds buyers again around 29.31
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
BHF ended Monday at 30.69 gaining $0.98 (3.3%) on low volume, significantly outperforming the S&P 500 (0.38%). Closing above Friday's high at 30.62, Brighthouse Financial confirmed its breakout through the prior session high after trading up to $0.57 above it intraday.
Daily Candlestick Chart (BHF as at Jun 01, 2020):
Monday's trading range has been $1.88 (6.3%), that's slightly below the last trading month's daily average range of $2.05. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BHF.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
After spiking up to 31.19 during the day, the stock found resistance at the 100-day moving average at 31.11. The last time this happened on May 12th, BHF lost -7.53% on the following trading day. After having been unable to move lower than 29.39 in the previous session, the market found buyers again around the same price level today at 29.31.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Brighthouse Financial. Out of 31 times, BHF closed lower 58.06% 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 51.61% with an average market move of -1.48%.