HCP closes higher for the 2nd day in a row
HCP Inc. (HCP) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HCP finished the week 3.72% higher at 29.01 after gaining $0.14 (0.48%) today, slightly outperforming the S&P 500 (-0.01%). Today's close at 29.01 marks the highest recorded closing price since December 11, 2018. Closing above Thursday's high at 28.94, the stock confirmed its breakout through the prior session high after trading up to $0.13 above it intraday.
Daily Candlestick Chart (HCP as at Jan 11, 2019):
Friday's trading range has been $0.31 (1.07%), that's far below the last trading month's daily average range of $0.79. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HCP.
After trading down to 28.76 earlier during the day, the share bounced off the key technical support level at 28.82 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on January 4th, HCP gained 1.18% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2018's high at 30.27 is within reach and we could see further upside momentum should the market manage to break out beyond.
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 HCP. Out of 426 times, HCP closed higher 57.75% 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 56.34% with an average market move of 0.34%.