Met finds buyers around 32.72 for the third day in a row
MetLife Inc. (MET) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Met finished the week 5.11% higher at 33.34 after edging lower $0.15 (-0.45%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MET as at May 22, 2020):
Friday's trading range has been $0.88 (2.62%), that's below the last trading month's daily average range of $1.33. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for Hit. Prices continued to consolidate within a tight trading range between 32.34 and 33.71 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man.
The stock found buyers again today around 32.72 for the third trading day in a row after having found demand at 32.95 in the prior session and at 32.91 two days ago. The last time this happened on March 31st, Met actually lost -8.73% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 33.71 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 32.34 where further sell stops could get triggered. As prices are trading close to May's high at 35.48, upside momentum might accelerate should the share mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for MetLife. Out of 97 times, Hit closed higher 51.55% 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 60.82% with an average market move of 0.60%.