Hit closes higher for the 2nd day in a row
MetLife Inc. (MET) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, Met finished the month 1.42% higher at 36.52 after gaining $0.95 (2.67%) today, notably outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 35.89, the stock confirmed its breakout through the previous session high after trading up to $0.86 above it intraday.
Daily Candlestick Chart (MET as at Jun 30, 2020):
Tuesday's trading range has been $1.51 (4.27%), that's slightly below the last trading month's daily average range of $1.55. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for Hit. Prices continued to consolidate within a tight trading range between 34.82 and 36.75 where it has been caught now for the whole last trading week.
Despite a weak opening MetLife managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 35.48 (S1). After spiking up to 36.75 during the day, the share found resistance at the 100-day moving average at 36.57. After having been unable to move lower than 35.08 in the previous session, the market found buyers again around the same price level today at 35.24. The last time this happened on June 25th, Met actually lost -3.49% on the following trading day.
Hit shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 38.03 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 34.82 where further sell stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for MetLife. Out of 43 times, Met closed higher 72.09% 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 72.09% with an average market move of 2.62%.