Metlife Inc (NYSE: MET)

MetLife, Inc., through its subsidiaries, provides insurance, annuities, and employee benefit programs in the United States, Japan, Latin America, the Middle East, Asia, and Europe. It operates in six segments: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit Funding; Latin America; Asia; and Europe, the Middle East and Africa. The company offers variable, universal, term, and whole life products; individual disability income products; personal lines property and casualty insurance, such as private passenger automobile, homeowners, and personal excess liability insurance; and variable and fixed annuities for asset accumulation and distribution needs, as well as mutual funds and other securities products.

To review MetLife’s stock, please take a look at the 1-year chart of MET (MetLife, Inc.) below with my added notations:

MET

Over the last year MET had consistently moved higher. During that time the stock had also formed a nice trend line of support (blue). Always remember that any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its importance. In addition, the MET formed an important price level at $50. In the last two weeks the stock has broken both of those support levels.

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The Tale of the Tape: MET has broken below trend line support and its $50 support. A short position could be entered on a rally up to $50, with a stop placed above that level. A long position could be entered if MET were to break back above $50.

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Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

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