Met closes within prior day's range
MetLife Inc. (MET) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Hit finished the week -7.3% lower at 43.83 after edging higher $0.07 (0.16%) today on high volume, strongly underperforming the S&P 500 (1.42%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MET as at Oct 12, 2018):
Friday's trading range has been $1.76 (3.98%), that's far above the last trading month's daily average range of $1.04. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for Met.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on August 31st, Hit gained 0.52% on the following trading day.
After trading down to 42.80 earlier during the day, the share bounced off the key technical support level at 43.25 (S1). The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 44.16 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 46.96.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for MetLife Inc.. Out of 26 times, Met closed higher 57.69% 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 76.92% with an average market move of 1.73%.