Health Care: Hospitals
The Hospital sector has
been quite strong this year when stacked up against the broad market. One component
of that group, Universal Health Services
(
UHS |
Quote |
Chart |
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PowerRating), is up approximately 5% year
to date. That is after the recent pullback from the April 29 high of $48.50.
This pullback has put UHS in a key Fibonacci price support zone from 42.40-44.10.
This price zone includes nine price levels. In fact, the last three declines
lasted between six and eight trading days and between three and five points
per decline. The current decline is at 4.7 points and seven trading days. I
also have time cycles kicking in for a potential low between May 8 and May 10.
So, with price and time lining up, I’m looking at a long trade (which is also
in the direction of the main trend), in UHS, with my stop just below this support
zone at 42.40.
