HCA still stuck within tight trading range
HCA Healthcare Inc. (HCA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HCA finished the month 30.48% higher at 126.64 after losing $1.41 (-1.1%) today, strongly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HCA as at Jul 31, 2020):
Friday's trading range has been $3.47 (2.71%), that's slightly below the last trading month's daily average range of $3.86. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HCA. Prices continued to consolidate within a tight trading range between 123.57 and 130.79 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on Monday, HCA actually lost -1.09% on the following trading day.
Prices are trading close to the key technical support level at 123.57 (S1). After having been unable to move above 128.48 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 127.88.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 130.79 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 123.57 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for HCA Healthcare. Out of 582 times, HCA closed higher 53.44% 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 58.93% with an average market move of 1.00%.