HSIC closes below its opening price unable to hold early session gains
Henry Schein Inc. (HSIC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HSIC ended Wednesday at 64.15 gaining $0.40 (0.63%), strongly outperforming the Nasdaq 100 (-1.67%). Trading $1.35 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HSIC as at Sep 16, 2020):
Wednesday's trading range has been $1.69 (2.63%), that's slightly above the last trading month's daily average range of $1.56. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HSIC. Prices continued to consolidate within a tight trading range between 63.06 and 65.81 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 63.22 (S1). After spiking up to 65.68 during the day, the share found resistance at the 50-day moving average at 65.50. The last time this happened on July 13th, HSIC actually gained 3.18% on the following trading day.
Though Henry Schein is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the close-by swing low at 63.06 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Henry Schein. Out of 461 times, HSIC closed higher 53.36% 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 62.69% with an average market move of 0.73%.