THC misses to close above 20-day moving average
Tenet Healthcare Corporation (THC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
THC ended the week 0.72% higher at 33.40 after losing $0.57 (-1.68%) today on low volume, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (THC as at Feb 14, 2020):
Friday's trading range has been $1.07 (3.15%), that's slightly below the last trading month's daily average range of $1.20. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for THC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, the share closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 32.89 (S1). After spiking up to 34.13 during the day, Tenet Healthcare found resistance at the 20-day moving average at 34.12. The last time this happened on January 17th, THC lost -2.69% on the following trading day. The market found buyers again today around 33.06 for the third trading day in a row after having found demand at 33.02 in the prior session and at 33.14 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 33.02 where further sell stops could get triggered. With prices trading close to this year's low at 31.41, downside momentum might accelerate should the stock break out to new lows for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for Tenet Healthcare. Out of 55 times, THC closed lower 54.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 54.55% with an average market move of -0.92%.