Hit breaks back above 20-day moving average
MetLife Inc. (MET) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Met ended the month 3.64% higher at 37.85 after gaining $0.30 (0.8%) today, slightly outperforming the S&P 500 (0.77%). Trading up to $0.36 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 37.73, the share confirmed its breakout through the previous session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (MET as at Jul 31, 2020):
Friday's trading range has been $0.72 (1.92%), that's below the last trading month's daily average range of $0.93. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for Hit.
Regardless of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 30th, Met actually lost -2.77% on the following trading day.
MetLife managed to close back above the 20-day moving average at 37.71.
Although Hit is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 38.73 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 36.93 where further sell stops could get activated. As prices are trading close to July's high at 39.52, upside momentum might accelerate should the stock mark new highs for the month.
Among the eight 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 44 times, Met closed higher 70.45% 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 72.73% with an average market move of 2.69%.