Stock of the day: MetLife

Today’s focus is on MetLife, where a potentially dangerous bearish formation is developing. The pattern, marked with yellow rectangles, is a head and shoulders formation. This setup, combined with a declining MACD, increases the likelihood of a major bearish drop if the formation plays out fully.

Despite this ominous setup, a confirmed sell signal has not yet been triggered. For a technical breakdown to occur, the price must break below the neckline, which is marked by black line. A daily close below the black uptrend line would confirm the long-term sell signal, signaling a shift in sentiment toward further downside.

However, yesterday’s candle formed a hammer, bouncing off support, which provides bullish traders a glimmer of hope. This could indicate a temporary pause in the downward momentum, potentially leading to a sideways trend in the near term.

For now, all eyes should remain on the neckline, as its breakout or defense will determine MetLife’s next major move. If buyers hold the level, we could see consolidation, but if it breaks, the stock may be in for a deeper decline.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-metlife