HCA closes within prior day's range after lackluster session
HCA Healthcare Inc. (HCA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
HCA ended the week 8.05% higher at 106.69 after losing $1.36 (-1.26%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HCA as at May 22, 2020):
Friday's trading range has been $3.29 (3.03%), that's below the last trading month's daily average range of $4.05. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HCA. Prices continued to consolidate within a tight trading range between 102.40 and 108.79 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Black Candle and the Dark Cloud Cover which are both known as bearish patterns.
Prices are trading close to the key technical resistance level at 109.50 (R1). After having been unable to move lower than 105.65 in the previous session, the market found buyers again around the same price level today at 105.50. The last time this happened on Tuesday, HCA gained 2.46% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dark Cloud Cover" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for HCA Healthcare. Out of 4 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 10 trading days, showing a win rate of 100.00% with an average market move of 3.51%.