$JSELHC - Life Healthcare: Is This The Breakout That Bucks Bear?
Life Healthcare stock peaked way back in 2014 around 4400 and has endured one the longest bear trends on the JSE.
The hospital sector did not catch tailwinds in the post covid-19 crash everything rally.
The share did catch a bid between December 2020 to June 2021 rallying from 1500 to 2820, though i must add cautiously, this rally looks to have unfolded in three waves and not five.
From the 2820 peak, the stock has been in a strong correction characterized by lower highs (LH) and lower lows (LL).
The lower low trend changed from the 1597 bottom and the stock started making higher lows (HL) which are signs of a turnaround.
Today, Life Healthcare released a trading update for the four months ended 31 January 2023 with a cautionary announcement on having received several unsolicited proposals from third parties to acquire AMG.
AMG is a core, wholly owned subsidiary.
The market liked the update which saw the share gap up at open and trade strongly intraday.
At the time of writing, the share is up over 13%.
What is significant technically is the share has broken above a key resistance trendline, made a new higher high relative to 1910 though the weekly candle has not closed yet.
Markets can react strongly to such proposals but can react equally negatively should the proposal not go through so until there's further announcements, trade cautiously and watch price action at the trendline.
The hospital sector did not catch tailwinds in the post covid-19 crash everything rally.
The share did catch a bid between December 2020 to June 2021 rallying from 1500 to 2820, though i must add cautiously, this rally looks to have unfolded in three waves and not five.
From the 2820 peak, the stock has been in a strong correction characterized by lower highs (LH) and lower lows (LL).
The lower low trend changed from the 1597 bottom and the stock started making higher lows (HL) which are signs of a turnaround.
Today, Life Healthcare released a trading update for the four months ended 31 January 2023 with a cautionary announcement on having received several unsolicited proposals from third parties to acquire AMG.
AMG is a core, wholly owned subsidiary.
The market liked the update which saw the share gap up at open and trade strongly intraday.
At the time of writing, the share is up over 13%.
What is significant technically is the share has broken above a key resistance trendline, made a new higher high relative to 1910 though the weekly candle has not closed yet.
Markets can react strongly to such proposals but can react equally negatively should the proposal not go through so until there's further announcements, trade cautiously and watch price action at the trendline.