BHF dominated by bulls lifting the market higher throughout the day
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BHF ended Monday at 31.73 gaining $1.00 (3.25%), significantly outperforming the S&P 500 (0.27%). Today's close at 31.73 marks the highest recorded closing price since June 17th. The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (BHF as at Aug 10, 2020):
Monday's trading range has been $1.06 (3.42%), that's slightly below the last trading month's daily average range of $1.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BHF.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on August 7th, BHF gained 3.25% on the following trading day.
Prices are trading close to the key technical resistance level at 32.43 (R1).
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 29.09.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five 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 43 times, BHF closed higher 58.14% 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 58.14% with an average market move of 0.12%.