DaVita HealthCare Partners (DVA) was downgraded today by The Street's Quant Ratings team, so when we looked at the chart today, we were not all that surprised to see a gap to the downside (see the chart, below).
In this daily chart of DVA, above, we can see that prices gaped to the downside this morning. Prices are below the rolling-over, 50-day moving average line and are testing the flat, 200-day average line.
The daily On-Balance-Volume (OBV) line has shown limited improvement from the February low. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line, for a sell signal.
In this three-year weekly chart of DVA, above, we can see that DVA is testing the flat, 40-week moving average line from above. The On-Balance-Volume (OBV) line looks like it is rolling over, and the MACD oscillator is crossing to a new sell signal.
Strategy: A 50% retracement to around the $68 area on DVA seems the likely course of action in the weeks ahead.
