Inv Head and Shoulders has been anticipated for months.
We were just waiting for the right shoulder to form, which it has done.
Next we'll need the price to close above the neckline and it should be a strong trade to buy, hold and profit.
Price >200
RSI>50
Target R23.78
ABOUT THE COMPANY
Life Healthcare Group is a South Africa-based healthcare provider....
Inv Head and Shoulders has formed for LHC.
We just need the final right shoulder to form, break up and out of the pattern.
Then we will see buying take over, driving the price up.
Price >200
RSI>50
Target 1 will be R23.78
ABOUT THE COMPANY
Life Healthcare is one of the largest private hospital operators in South Africa, providing acute hospital care across...
Inverse Reverse C and H has formed on Life Health.
The price did close below the brim level which also happened to be on the 200MA.
This is a big test for the company.
Once the price breaks below 200MA, there is a high chance of it closing the gap and dropping further.
21>7
Price -200 - Test
RSI<50 - lower highs
Target R16.23
It is a medium probability trade...
W Formation formed, we then had some high volatility around the price.
Luckily, the stop loss would have been below the pattern.
The indicators were all showing bullish signs.
7>21>200
RSI>50
Target struck at R21.34
ABOUT THE COMPANY
Life Healthcare Group Holdings Limited was founded in 1983 and is headquartered in Johannesburg, South Africa.
Life...
- Price is up against the 200ma
- A positive push through could see the inverted head & shoulders play out
- Confirmation is needed so currently neutral
- MANAGE YOUR RISK -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
JSE:LHC
Posted trading statement this morning. Watch for break above neckline.
From trading statement:
The Group delivered good results for the 2019 financial year in challenging operating conditions
with strong revenue growth of between 7.9% and 10.3% (2018: R23 488 million).
Life Healthcare has been trading in a downtrend. After a redistribution and backup to the trading range, the expectation was for a continuation (See posts below). It has taken some time but with some volume, it seems LHC is only now ready to be marked down further.
Life Healthcare has been trading in a well defined downward stride. After a selling climax in April 2017 LHC formed a redistribution trading range (TR). This range tested the supply line of the stride and has now broken the TR and we have seen a backup (BU) to test the TR. After not being able to break back into the TR we can expect the markdown to continue.
LHC has been in a downtrend since the end of 2014. After reaching the oversold line the stock has been in a Trading Range (TR). It has now reached the overbought line with a high volume rejection. Will watch for the downward stride to continue.
