HCA finds buyers at key support level
HCA Healthcare Inc. (HCA) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
HCA finished Tuesday at 128.39 gaining $2.52 (2.0%), strongly outperforming the S&P 500 (0.36%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 127.30, the share confirmed its breakout through the prior session high after trading up to $1.49 above it intraday.
Daily Candlestick Chart (HCA as at Aug 04, 2020):
Tuesday's trading range has been $4.43 (3.55%), that's slightly above the last trading month's daily average range of $3.92. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 124.36 and 130.79 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 bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 124.36 earlier during the day, HCA Healthcare bounced off the key technical support level at 124.41 (S1). The failure to close below the support might increase that levels importance as support going forward. The market found buyers again today around 124.36 for the third trading day in a row after having found demand at 124.81 in the previous session and at 124.41 two days ago. The last time this happened on July 28th, HCA gained 4.70% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 130.79 where further buy stops might get triggered.
Among the 11 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 438 times, HCA closed higher 57.08% 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 56.62% with an average market move of 0.47%.