THC closes lower for the 3rd day in a row
Tenet Healthcare Corp. (THC) Technical Analysis Report for Oct 12, 2018
Moving lower for the 3rd day in a row, THC ended the week -8.44% lower at 25.39 after edging lower $0.04 (-0.16%) today, strongly underperforming the S&P 500 (1.42%). Today's close at 25.39 marks the lowest recorded closing price since April 30th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (THC as at Oct 12, 2018):
Friday's trading range has been $1.01 (3.91%), that's slightly below the last trading month's daily average range of $1.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for THC.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 27.83.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Tenet Healthcare. Out of 131 times, THC closed higher 54.96% 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 54.20% with an average market move of 1.36%.