In the rapid-fire Lightning Round segment of Mad Money lucky callers get a chance to ask host Jim Cramer about stocks they are interested in. One caller Wednesday evening asked about HCA Healthcare Inc. (HCA) . "I think HCA is undervalued," said Cramer. Undervalued is not part of the vocabulary of technical analysts so let's take a look at the charts and indicators.
In the daily bar chart of HCA, below, we can see how hard the shares tumbled from February to the middle of March. HCA has since recovered and is back into an area of overhead resistance. Prices are trading above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line has mirrored the movement in the stock and is not far from making a new high for the move up from its March low. A new high on the OBV line would tell us that buyers of HCA have been more aggressive and this could support further price gains.
The Moving Average Convergence Divergence (MACD) oscillator has finally moved above the zero line with some power and tells us that there is some strength to this current rally.