A healthcare provider is set up for a big move higher, according to the charts
Frank Cappelleri of CappThesis breaks down the technicals on this name.
TL;DR
- HCA stock is forming a bullish cup-and-handle pattern with a potential upside target of $514.
- The stock has bounced off a key uptrend line on the weekly chart, which has been a significant technical reference point.
- Bullish crossovers of the 13-week and 26-week moving averages on the weekly chart have historically preceded substantial advances for HCA.
- The HCA/XLV ratio is turning higher from oversold conditions, indicating potential outperformance against the healthcare sector.
- Previous technical formations on HCA have led to significant price movements, suggesting the current bullish pattern could lead to a similar reaction.