BHF unable to break through key resistance level
Brighthouse Financial Inc. (BHF) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
BHF ended Wednesday at 29.33 gaining $0.73 (2.55%) on high volume, notably outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BHF as at Sep 16, 2020):
Wednesday's trading range has been $1.66 (5.77%), that's above the last trading month's daily average range of $1.26. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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.
Unable to break through the key technical resistance level at 29.96 (R1), Brighthouse Financial closed below it after spiking up to 30.01 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Monday, BHF lost -3.70% on the following trading day.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 30.13 where further buy stops could get activated.
Among the three 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 36 times, BHF closed lower 61.11% 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 52.78% with an average market move of -1.60%.