BHF stuck within tight trading range
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BHF ended the month -6.36% lower at 27.82 after gaining $0.85 (3.15%) today, significantly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 27.62, the stock confirmed its breakout through the previous session high after trading up to $0.34 above it intraday.
Daily Candlestick Chart (BHF as at Jun 30, 2020):
Tuesday's trading range has been $1.30 (4.88%), that's far below the last trading month's daily average range of $2.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BHF. Prices continued to consolidate within a tight trading range between 26.01 and 27.99 where it has been caught now for the last three trading days.
Regardless of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Short Candle showed up on April 27th, BHF gained 7.10% on the following trading day.
Brighthouse Financial shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 26.01 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Brighthouse Financial. Out of 26 times, BHF closed higher 61.54% 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 10 trading days, showing a win rate of 65.38% with an average market move of 1.96%.