UHS closes above its opening price after recovering from early selling pressure
Universal Health Services Inc. (UHS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UHS ended the month -11.91% lower at 92.89 after gaining $0.62 (0.67%) today on low volume, underperforming the S&P 500 (1.54%). Trading up to $2.34 lower after the open, the market 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 failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (UHS as at Jun 30, 2020):
Tuesday's trading range has been $4.19 (4.58%), that's below the last trading month's daily average range of $5.35. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UHS. Prices continued to consolidate within a tight trading range between 87.86 and 93.70 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 93.44 (R1). Universal Health found buyers again today around 89.23 for the third trading day in a row after having found demand at 89.03 in the prior session and at 88.47 two days ago. The last time this happened on June 2nd, UHS gained 0.38% on the following trading day.
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 nearby swing high at 97.54 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 87.86 where further sell stops could get triggered. Trading close to April's low at 83.28 we might see further downside momentum if potential sell stops at the level get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Universal Health. Out of 106 times, UHS closed higher 55.66% 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 55.66% with an average market move of 0.67%.