THC closes above its opening price after recovering from early selling pressure
Tenet Healthcare Corporation (THC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
THC finished the month -16.77% lower at 18.11 after edging lower $0.09 (-0.49%) today on low volume, notably underperforming the S&P 500 (1.54%). Trading up to $0.79 lower after the open, Tenet Healthcare managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jun 30, 2020):
Tuesday's trading range has been $0.92 (5.09%), that's far below the last trading month's daily average range of $1.67. 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. Prices continued to consolidate within a tight trading range between 16.99 and 18.87 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Doji showed up on April 16th, THC gained 15.52% on the following trading day.
Prices are trading close to the key technical resistance level at 18.55 (R1). After having been unable to move lower than 17.17 in the previous session, the share found buyers again around the same price level today at 17.29.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 18.55 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 16.99 where further sell stops could get activated. Further selling might move prices lower should the market test May's close-by low at 15.19.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Tenet Healthcare. Out of 548 times, THC closed lower 50.18% 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 52.92% with an average market move of -0.26%.