Hit closes lower for the 2nd day in a row
MetLife Inc. (MET) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, Hit ended the week 1.36% higher at 52.28 after losing $0.10 (-0.19%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MET as at Feb 14, 2020):
Friday's trading range has been $0.60 (1.14%), that's below the last trading month's daily average range of $0.75. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for Met.
In spite of a strong opening MetLife closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on December 27, 2019, Hit lost -0.26% on the following trading day.
Prices are trading close to the key technical resistance level at 52.66 (R1). After having been unable to move lower than 51.94 in the prior session, the stock found buyers again around the same price level today at 51.87.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for MetLife. Out of 309 times, Met closed higher 55.66% 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 56.31% with an average market move of 0.56%.