HSIC fails to close above 20-day moving average
Henry Schein Inc. (HSIC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HSIC finished Thursday at 53.56 gaining $3.53 (7.06%) on high volume, notably outperforming the Nasdaq 100 (5.72%). Closing above Wednesday's high at 52.82, Henry Schein confirmed its breakout through the previous session high after trading up to $8.00 above it intraday.
Daily Candlestick Chart (HSIC as at Mar 26, 2020):
Thursday's trading range has been $11.17 (21.56%), that's far above the last trading month's daily average range of $4.56. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HSIC.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Buyers managed to take out the key technical resistance level at 53.52 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, HSIC actually lost -7.09% on the following trading day. After spiking up to 60.82 during the day, the market found resistance at the 20-day moving average at 54.52.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Henry Schein. Out of 242 times, HSIC closed higher 56.61% 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 61.57% with an average market move of 0.32%.