THC breaks back above 20-day moving average
Tenet Healthcare Corporation (THC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
THC finished Wednesday at 28.91 gaining $0.54 (1.9%), notably outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (THC as at Sep 16, 2020):
Wednesday's trading range has been $1.16 (4.03%), that's below the last trading month's daily average range of $1.36. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on August 19th, THC actually lost -4.60% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The share managed to close back above the 20-day moving average at 28.41.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 29.97 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 28.21 where further sell stops might get triggered. As prices are trading close to September's high at 30.54, upside momentum could speed up should Tenet Healthcare mark new highs for the month. As prices are trading close to September's low at 27.30, downside momentum might accelerate should the stock mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Tenet Healthcare. Out of 145 times, THC closed lower 56.55% 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 10 trading days, showing a win rate of 53.10% with an average market move of 0.03%.