Hit closes within prior day's range after lackluster session
MetLife Inc. (MET) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Met ended Wednesday at 37.63 edging higher $0.12 (0.32%) on high volume, outperforming the S&P 500 (-0.46%). Trading $0.50 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. 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 Sep 16, 2020):
Wednesday's trading range has been $0.70 (1.85%), that's below the last trading month's daily average range of $1.01. 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Homing Pigeon. The last time a Homing Pigeon showed up on April 23rd, Met gained 4.39% on the following trading day.
Unable to break through the key technical resistance level at 37.95 (R1), the share closed below it after spiking up to 38.25 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 37.48 in the previous session, the stock found buyers again around the same price level today at 37.55.
Though MetLife is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the nearby swing low at 37.48 where further sell stops might get triggered. Further selling could move prices lower should the market test August's close-by low at 36.57.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for MetLife. Out of 27 times, Hit closed lower 62.96% of the time on the next trading day after the market condition occurred.