HCA slips to lowest close since July 24, 2018
HCA Healthcare Inc. (HCA) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, HCA finished Tuesday at 114.38 tanking $12.71 (-10.0%) on high volume, strongly underperforming the S&P 500 (0.05%). This is the biggest single-day loss ever recorded for the market. Today's close at 114.38 marks the lowest recorded closing price since July 24, 2018. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 126.38, HCA Healthcare confirmed its breakout through the prior session low after trading up to $12.77 below it intraday.
Daily Candlestick Chart (HCA as at Apr 16, 2019):
Tuesday's trading range has been $14.56 (11.36%), that's far above the last trading month's daily average range of $3.05. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for HCA.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices broke below the key technical support level at 118.73 (now R1), which is likely to act as resistance going forward. After having been unable to move above 128.25 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 128.17. The last time this happened on April 11th, HCA lost -1.74% on the following trading day.
Crossing below the lower Bollinger Band for the first time since March 8th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 130.72 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for HCA Healthcare. Out of 12 times, HCA closed higher 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after nine trading days, showing a win rate of 66.67% with an average market move of 0.47%.