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Fan Yang

Metlife Inc. (MET) - Bullish Breakout and Pullback; One More Key Resistance

Metlife Inc. $MET was in a bullish breakout last week from a range that started earlier in the year. It broke above a key resistance around $46.40. The pullback to start the week gives us a chance to see how the market reacts when testing the previous resistance as support.

MET Daily Chart

(click to enlarge)

Breakout and Bullish Reversal:
- We can see that price action was bearish since late 2017 and into late 2018. 
- But in 2019 so far, we have see a pullback, and price made a higher low.
- But until recently, price was still unable to make a higher high.
- The break above $46.40 finally made this happen, and confirmed that the market is in a bullish reversal swing.
- Also note that price bounced off the cluster of moving averages in April - this is part of a bullish slingshot signal.
Resistance:
- The breakout was a strong bullish indication, but price is now facing the next resistance around $48.65. 
- Before being able to test it, we are seeing a pullback during the Monday 5/6 session.
- This pullback was market-wide and was a reaction to Trump's signaling of more tariffs to come. 
Support:
- Now, if price holds above $46, we have a clear bullish development. If price then rallies to test the $48.65 level, I would expect it to break outside of a short-term resistance.
- Now if the current pullback extends, the critical support will be around $44, the middle of the previous range, and a key support pivot going back to 2018. 
- A break below $44 suggests a failed bullish reversal and opens up the $38-$40 area. 
- Otherwise, I think we should anticipate pressure the other way, towards $48.65 and the $50 handle. 
- Above that we could be looking at continuation of the rising channel, which would suggest highs above the 2017 high around $56.

MET Daily Chart

(click to enlarge)

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