Conclusion, Investment Implications, Strategy
MetLife, Inc. (MET) appears to be resuming its July 2020 major uptrend amid coincident quarterly relative outperformance versus the benchmark S&P 500 (SPX). A sustained rise above the $60.14 area would help confirm this and would target an additional 14% rise to $72.00per share. This is an Asbury Momentum trade idea.
Analysis and Rationale
MetLife, Inc. (MET), a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings. The company offers life, dental, group short-and long-term disability, individual disability, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements. It also provides pension risk transfers, institutional income annuities, structured settlements, and capital markets investment products; and other products and services, such as life insurance products and funding agreements for funding postretirement benefits, as well as company, bank, or trust-owned life insurance used to finance nonqualified benefit programs for executives. MetLife, Inc. was founded in 1863 and is headquartered in New York, New York.
The upper panel of Chart 1 below plots MET daily since November 2020 along with its 200- and 50-day moving averages, widely-watched major and minor trend proxies. The lower panel displays a corresponding daily relative performance chart of MET versus the benchmark S&P 500 (SPX, blue) along with its 63-day moving average (green, quarterly, our Strategic time period).
Chart 1
The rightmost green highlights in the upper panel show that MET appears to be resuming its July 2020 major uptrend, as defined by its 200-day MA, following last week’s test of the 50-day MA. Meanwhile, MET’s’s current trend of quarterly relative outperformance versus SPX as shown in the lower panel also appears to be resuming. The other green highlights show that similar tests of the Strategic relative outperformance trend on Feb 1st and Dec 21st resulted in the resumption of the trends in both panels. A sustained rise above the 50-day MA, currently situated at $60.14, would help to confirm the outright uptrend has resumed and would target an additional 14% rise to $72.00 per share.
Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $60.78 area, a long entry price of $63.33 would provide a 1:3.4 risk/reward ratio (risking $1.00 to make $3.40) with an initial risk of 4.0%.
Table 1
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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.