UHS closes lower for the 2nd day in a row
Universal Health Services Inc. (UHS) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, UHS ended the month -0.23% lower at 105.45 after losing $1.80 (-1.68%) today, strongly underperforming the S&P 500 (0.48%). Closing below Thursday's low at 106.37, the stock confirmed its breakout through the previous session low after trading up to $3.18 below it intraday.
Daily Candlestick Chart (UHS as at May 29, 2020):
Friday's trading range has been $3.76 (3.53%), that's below the last trading month's daily average range of $4.55. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UHS.
Prices are trading close to the key technical support level at 102.64 (S1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the nearby swing low at 101.20 where further sell stops might get activated. Further buying could move prices higher should the market test April's close-by high at 113.52.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Universal Health. Out of 303 times, UHS closed higher 51.16% 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 59.74% with an average market move of 0.99%.