HCA closes below its opening price unable to hold early session gains
HCA Healthcare Inc. (HCA) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
HCA finished the week 2.36% higher at 129.07 after edging higher $0.38 (0.3%) today on low volume, slightly outperforming the S&P 500 (-0.07%). Trading $1.76 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 4th, HCA actually gained 2.42% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HCA as at Sep 13, 2019):
Friday's trading range has been $2.48 (1.92%), that's slightly below the last trading month's daily average range of $2.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HCA.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Shooting Star.
Prices are trading close to the key technical support level at 128.77 (S1). HCA Healthcare found buyers again today around 128.78 for the third trading day in a row after having found demand at 128.62 in the prior session and at 129.00 two days ago.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling could accelerate should prices move below the nearby swing low at 128.62 where further sell stops might get triggered. Further buying could move prices higher should the market test August's close-by high at 133.19.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for HCA Healthcare. Out of 477 times, HCA closed higher 52.20% 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 10 trading days, showing a win rate of 57.23% with an average market move of 0.91%.