THC finds buyers around 25.64 for the third day in a row


Tenet Healthcare Corporation (THC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team

Highlights

THC finds buyers around 25.64 for the third day in a row
THC finds buyers at key support level
THC closes lower for the 2nd day in a row
THC stuck within tight trading range
THC closes within previous day's range

Overview

Moving lower for the 2nd day in a row, THC finished the month 46.0% higher at 26.44 after losing $0.39 (-1.45%) today, strongly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (THC as at Jul 31, 2020):

Daily technical analysis candlestick chart for Tenet Healthcare Corporation (THC) as at Jul 31, 2020

Friday's trading range has been $1.36 (5.05%), that's slightly below the last trading month's daily average range of $1.39. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for THC. Prices continued to consolidate within a tight trading range between 25.61 and 27.28 where it has been caught now for the last three trading days.

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.

After trading down to 25.64 earlier during the day, Tenet Healthcare bounced off the key technical support level at 25.67 (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 July 14th, THC gained 8.13% on the following trading day. Prices are trading close to the key technical resistance level at 27.28 (R1). The stock found buyers again today around 25.64 for the third trading day in a row after having found demand at 25.61 in the previous session and at 25.73 two days ago.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying might speed up should prices move above the close-by swing high at 27.28 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 25.61 where further sell stops could get triggered.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Tenet Healthcare. Out of 405 times, THC closed higher 55.06% 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 52.59% with an average market move of 1.22%.


Market Conditions for THC as at Jul 31, 2020

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