HCA closes higher for the 3rd day in a row
HCA Healthcare Inc. (HCA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HCA finished Wednesday at 138.01 gaining $2.21 (1.63%), notably outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HCA as at Sep 16, 2020):
Wednesday's trading range has been $2.45 (1.79%), that's below the last trading month's daily average range of $3.53. 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.
Buyers managed to take out the key technical resistance level at 137.98 (now S1), which is likely to act as support going forward. After having been unable to move above 138.76 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 139.16. The last time this happened on September 4th, HCA lost -3.30% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's high at 139.48, upside momentum might speed up should the stock mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for HCA Healthcare. Out of 589 times, HCA closed higher 53.31% 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 58.91% with an average market move of 1.02%.