UHS finds buyers again around 108.38
Universal Health Services Inc. (UHS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, UHS finished the month 18.31% higher at 109.90 after losing $2.17 (-1.94%) today, significantly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (UHS as at Jul 31, 2020):
Friday's trading range has been $3.19 (2.87%), that's slightly below the last trading month's daily average range of $3.71. 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 UHS.
Prices broke below the key technical support level at 110.58 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 108.56 in the previous session, the market found buyers again around the same price level today at 108.38. The last time this happened on July 14th, UHS gained 5.69% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the close-by swing low at 105.78 where further sell stops could get activated.
Among the four 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 302 times, UHS closed higher 51.32% 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 59.93% with an average market move of 1.03%.