HSIC finds buyers at key support level
Henry Schein Inc. (HSIC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
HSIC ended the month 17.71% higher at 68.73 after edging higher $0.08 (0.12%) today, strongly underperforming the Nasdaq 100 (1.78%). Today's close at 68.73 marks the highest recorded closing price since February 20th. Trading up to $0.63 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 68.66, the share confirmed its breakout through the previous session high after trading up to $0.41 above it intraday.
Daily Candlestick Chart (HSIC as at Jul 31, 2020):
Friday's trading range has been $1.42 (2.08%), that's below the last trading month's daily average range of $2.16. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HSIC.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
After trading down to 67.65 earlier during the day, Henry Schein bounced off the key technical support level at 67.88 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 17th, HSIC actually lost -0.79% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 69.98 where further buy stops could get triggered.
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 Henry Schein. Out of 485 times, HSIC closed higher 59.79% 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 57.94% with an average market move of 0.67%.