THC runs into sellers again around 23.22
Tenet Healthcare Corporation (THC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
THC finished the week 33.33% higher at 22.88 after losing $0.17 (-0.74%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (THC as at May 22, 2020):
Friday's trading range has been $1.38 (5.95%), that's below the last trading month's daily average range of $1.68. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for THC.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading down to 21.84 earlier during the day, Tenet Healthcare bounced off the key technical support level at 22.09 (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 April 16th, THC gained 15.52% on the following trading day. After having been unable to move above 23.40 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 23.22.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 19.23.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 23.40 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for Tenet Healthcare. Out of 58 times, THC closed lower 58.62% 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 10 trading days, showing a win rate of 55.17% with an average market move of -1.24%.