MetLife Shares Jump 3.32% on Bullish Technical Reversal Signals

MetLife (MET) shares rose 3.32% to $76.27 in the latest session, closing near the daily high of $76.64 on above-average volume, signaling robust bullish momentum following the prior day's sharp decline to $72.10. This price action warrants a multi-indicator technical assessment.
Candlestick Theory
A bullish engulfing pattern emerged as the August 8th white candle ($74.19–$76.64) completely engulfed the previous session’s red candle ($72.10–$74.94). This reversal signal is reinforced by the long lower wick on August 7th, indicating rejection of the $72.10 level, which now serves as immediate support. Resistance is observed at $77.65 (June swing high) and the psychological $80.00 barrier. A close above $76.64 would confirm buyer conviction, while failure to hold $75.53 invalidates the pattern.
Moving Average Theory
The 50-day MA (approximated at $76.30) converges with the current price ($76.27), creating a pivotal inflection point. A sustained break above it would likely target the 100-day MA ($77.80). However, the long-term 200-day MA ($78.50) caps upside potential as it slopes downward—reflecting persistent overhead supply. Death crosses persist with the 50-day below the 100-day and 200-day MAs, though diminishing distance between the 50-day and 100-day suggests bearish momentum is decelerating.
MACD & KDJ Indicators
MACD histogram readings remain negative but show narrowing bearish momentum, with the signal line hovering near convergence. KDJ’s %K (near 60.61) approaches the threshold for overbought territory but hasn’t crossed %D, implying room for extension. Confluence appears at the 50% Fibonacci level ($76.60), where overcoming MACD’s bearish bias and KDJ overbought signals would require significant volume. A bullish MACD crossover above the signal line near $76.60 would strengthen reversal prospects.
Bollinger Bands
Bands are expanding after a contraction period in early August, signaling increasing volatility. Price closed near the upper band ($78.80 estimate), typically indicating overbought conditions. However, this aligns with the bullish engulfing pattern—a volatility breakout confirmation. The mid-band ($76.00) now acts as dynamic support. A close above the upper band would suggest continuation, while a reversal below $75.50 could trigger a retest of the lower band ($73.20).
Volume-Price Relationship
Volume surged 22.7% to 4.35 million shares during the 3.32% advance, confirming accumulation. Notably, the August 7th sell-off to $72.10 occurred on even higher volume (5.63 million shares), establishing that level as a high-conviction support zone. The volume/price breakout above $75.50 validates sustainability, provided turnover remains above the 30-day average (4.1 million shares). Divergence is absent, with volume consistently confirming price direction.
Relative Strength Index (RSI)
The 14-day RSI (approximately 49.8) hovers near neutral territory, leaving ample headroom before overbought concerns arise at 70. This neutral positioning coincides with the stock emerging from oversold conditions two sessions prior, suggesting unfinished recovery potential. However, RSI’s failure to exceed 55 during the latest surge slightly diverges from price strength, warranting vigilance for bearish reversals if RSI stalls near 60 without corresponding price gains.
Fibonacci Retracement
Using the July 1st high ($81.09) and August 7th low ($72.10) as anchors, price has cleared the 38.2% retracement ($75.53) and challenges the 50% level ($76.60). Confluence exists here with the 50-day MA and psychological resistance, making it critical for near-term direction. A decisive break targets the 61.8% retracement ($77.65). Major Fibonacci resistance from the February high ($86.18) to April low ($69.07) lies at $77.63 (38.2%) and $79.64 (50%), aligning with swing highs in May.
Confluence is strongest at the $76.60–$77.65 zone, where the 50% daily Fibonacci, 100-day MA, and major weekly Fibonacci converge. A breakout here on sustained volume would signal a bullish trend shift, while rejection suggests range-bound consolidation between $72.10 and $77.65. No critical divergences are observed among core indicators, though RSI’s lagging momentum relative to price warrants monitoring.