HCA Healthcare, Inc. (HCA) emerged on the upside in December from a sideways consolidation pattern. Prices have rallied from around $75 to $130 but there looks like there is more room on the upside.
Let's check the charts and indicators for clues.
(For more on HCA, see Why Stocks Keep Charging: Cramer's 'Mad Money' Recap.)
In this daily bar chart of HCA, below, we can see that all of our favorite indicators have a bullish set-up. Prices are above the rising 50-day and the bullish 200-day moving averages. A bullish golden cross of these two averages can be seen in early January.
The daily On-Balance-Volume (OBV) line shows a rise from October which tells us that buyers of HCA have been acting more aggressively than sellers.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is also bullish.
In this weekly bar chart of HCA, below, we can see that prices are above the rising 40-week moving average line. HCA made a long base from late 2015 until late 2017.
The weekly OBV line is bullish and so is the weekly MACD oscillator.
In this Point and Figure chart of HCA, below, we can see a price target of $138.78, or let's call it $139-$140.
Bottom line strategy: In the short-run the chart of HCA looks extended so traders should wait for a dip into the $125-$120 area before buying. Risk below $115 and look for gains into the $140-$150 area in the months ahead.