HSIC finds buyers around 70.68 for the third day in a row
Henry Schein Inc. (HSIC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
HSIC ended the week 3.09% higher at 72.13 after gaining $0.62 (0.87%) today, outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 72.13 marks the highest recorded closing price since July 26, 2017. Trading up to $0.90 lower after the open, Henry Schein managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 71.96, the share confirmed its breakout through the previous session high after trading up to $0.17 above it intraday.
Daily Candlestick Chart (HSIC as at Feb 14, 2020):
Friday's trading range has been $1.45 (2.03%), that's slightly above the last trading month's daily average range of $1.44. 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 slightly lower than usual for HSIC.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on January 30th, HSIC actually lost -3.54% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Closing Marubozu.
After trading down to 70.68 earlier during the day, the market bounced off the key technical support level at 70.84 (S2). The failure to close below the support could increase that levels importance as support going forward. The stock found buyers again today around 70.68 for the third trading day in a row after having found demand at 70.87 in the prior session and at 70.81 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 72.81 is within reach and we might see further upside momentum should HSIC manage to break out beyond.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Its common bullish interpretation has been confirmed for Henry Schein. Out of 26 times, HSIC closed higher 53.85% 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 65.38% with an average market move of 0.83%.