Hit pushes through key technical resistance level
MetLife Inc. (MET) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, Met ended Thursday at 32.53 gaining $2.79 (9.38%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 32.46, the stock confirmed its breakout through the previous session high after trading up to $0.28 above it intraday.
Daily Candlestick Chart (MET as at Mar 26, 2020):
Thursday's trading range has been $3.16 (10.48%), that's above the last trading month's daily average range of $2.68. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for Hit.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 32.03 (now S1), which is likely to act as support going forward. After having been unable to move above 32.46 in the prior session, MetLife ran into sellers again around the same price level today, failing to move higher than 32.74. The last time this happened on March 19th, Met lost -9.03% on the following trading day.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for MetLife. Out of 560 times, Hit closed higher 51.25% 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 54.29% with an average market move of 0.18%.