HCA closes higher for the 2nd day in a row
HCA Healthcare Inc. (HCA) Technical Analysis Report for Dec 05, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HCA finished Thursday at 140.68 edging higher $0.07 (0.05%), slightly underperforming the S&P 500 (0.15%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HCA as at Dec 05, 2019):
Thursday's trading range has been $2.08 (1.47%), that's slightly below the last trading month's daily average range of $2.31. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently 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.
After trading down to 139.29 earlier during the day, the stock bounced off the key technical support level at 140.04 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 141.38 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 141.37.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, the share has entered a so-called "Golden Cross" for the first time since September 10th. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon. When the last "Golden Cross" happened on July 29th, HCA actually lost -9.14% on the following trading day.
Buying could speed up should prices move above the nearby swing high at 141.38 where further buy stops might get triggered. Further buying could move prices higher should the market test November's close-by high at 141.89.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for HCA Healthcare. Out of 411 times, HCA closed higher 57.18% 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 57.18% with an average market move of 0.70%.