HSIC breaks below Thursday's low
Henry Schein Inc. (HSIC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HSIC finished the week 9.56% higher at 56.71 after losing $0.47 (-0.82%) today, notably underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 56.73, Henry Schein confirmed its breakout through the prior session low after trading up to $0.52 below it intraday.
Daily Candlestick Chart (HSIC as at May 22, 2020):
Friday's trading range has been $1.24 (2.16%), that's below the last trading month's daily average range of $2.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HSIC.
In spite of a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices broke below the key technical support level at 56.95 (now R1), which is likely to act as resistance going forward. The last time this happened on March 16th, HSIC actually gained 5.73% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 58.77 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Henry Schein. Out of 61 times, HSIC closed higher 63.93% 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 65.57% with an average market move of 1.91%.