HCA Healthcare ( HCA) is getting its quarterly numbers together to tell shareholders and analysts Friday how they are doing. Let's check out the charts and indicators to see if they provide us any clues on the health of the stock.
In the daily bar chart of HCA, below, we can see that the shares have corrected sharply lower since April. HCA gapped below the 50-day and 200-day moving average lines. Prices are now showing some stability in the $10-$160 area since late June.
The daily On-Balance-Volume (OBV) line shows a decline into June and a slightly higher low in July. This movement in the OBV line is a subtle improvement. The Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal in late June but is still below the zero line.
In the weekly Japanese candlestick chart of HCA, below, we can see some lower shadows in the $165 area in recent weeks. This candlestick development is constructive. The slope of the 40-week moving average line is negative.
The weekly OBV line shows weakness from September and a slight improvement in July. The MACD oscillator is in a bearish alignment below the zero line.
In this daily Point and Figure chart of HCA, below, we can see a potential upside price target in the $207 area.
In this weekly Point and Figure chart of HCA, below, we can see the same $207 price target.
Bottom-line strategy: HCA looks like it can make a trading bounce in the near-term. I have no special knowledge of what HCA may report to shareholders Friday but the charts suggest a rally is possible. Aggressive traders could go long on available weakness risking below $170. The $207 area is our price target.
