Although 2016 was tough, the HealthCare Providers group has some excellent technical structures for long term investors. Some of these ideas are quite actionable. Others are going to require patience.
Here’s a look at the top components in Healthcare Provider ETF IHF:
Now let’s break down some of the components.
CorVel (CRVL) has traded within this large range for 3 years. It’s far from actionable right now, but it appears headed back to the top of the range in time.
DaVita (DVA) saw a very interesting move in Q4 2016. Buyers aggressively showed up under the early 2016 low of 61. Now 61 is holding again. With flat trends on all time frames and aggressive demand at lower prices, this is an idea worth watching. Particularly above 68.
What once could have been construed as a head and shoulders top, Express Scripts (ESRX) is finding support at 65. It’s a clear line in the sand moving forward.
Centene (CNC) has consolidated well above the 200 week moving average within a slightly falling channel. If it can break free here and get above that prior resistance at 76, a move to 100 may be in the cards.
Anthem (ANTM) has seen an incredible rip post-election. There’s no telling how much basing there is to do yet, but the base is in healthy shape and worth keeping an eye on moving forward.
Universal Health Services (UHS) is within a great 50 dollar compression. The structure is healthy, but we want to see it break 130 and even 140 before we can start thinking about a move to 200.
Buyers keep showing up in the low 60’s area in Mednax (MD). Price is ready to get moving. The low 60s are a good level to hold against if you’re bullish. Two targets would be 85 and 100.
Obviously there are no guarantees in the market, but there is a lot to work with in this group. The average investor continues to shun this group and it has created opportunity for bulls.
Trade ’em Well
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