THC fails to close above 20-day moving average
Tenet Healthcare Corporation (THC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, THC ended Thursday at 18.48 edging higher $0.48 (2.67%) on high volume, strongly underperforming the S&P 500 (6.24%). Trading $2.40 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, THC actually gained 19.60% on the following trading day. 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 Mar 26, 2020):
Thursday's trading range has been $4.22 (22.33%), that's far above the last trading month's daily average range of $2.97. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for THC.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
After spiking up to 21.30 during the day, the market found resistance at the 20-day moving average at 19.66.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Tenet Healthcare. Out of 26 times, THC closed higher 69.23% 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 four trading days, showing a win rate of 61.54% with an average market move of 0.96%.