Healthcare stocks have not experienced the S&P500’s volatility, but HCA Holdings stock price fluctuate enough to offer trading opportunities to stock traders. HCA stock’s technical analysis show a crucial support level at 17.50 where a price rejection occurred three times and eventually an uptrend developed in October 2011. According to the daily HCA stock chart, the stock price has since retraced back to the trend line in December and January 2012, printing an 8-month high close to $30 per share in February, gaining almost 70% during that period! However HCA stock performance was disappointing back in summer 2011 when it lost half of their shares value! As HCA shares are closing to that price level, traders should not keep HCA stock in their portfolio for long, if they opt to go long now that the stock has formed a bullish candlestick formation right on the trend line!
Thursday’s doji candlestick and Friday’s 3.5% gain initiated what it looks like an uptrend resume. Traders who entered the market at $23 on Thursday trusting the pullback to the trend line are now confident of their trade. That entry point has performed excellent but maybe there’s still some profit to make, in case the healthcare stock decides to retest the resistance level of $30. However, I strongly regard that high as an exhaustion bar, mainly due to the gap of that day. That means buyers have depleted all their buying power and sellers will gradually take control of the market. Unless HCA stock price isn’t rejected at the resistance level. Until then I wouldn’t be surprised if HCA stock gains 3 or 4 dollars per share. As always, a stop loss at $22 is necessary to minimize the losses, if technical analysis is proven wrong.
HCA Holdings is a healthcare services companies operating more than 100 hospitals.
Disclaimer: I’m neither long nor short HCA.