Big down day.Down big on volume. Might be a good short if it retraces back up a little bit. Looking at the weekly chart this could go down to $20.
SEM trade ideas
SELECT MEDICAL HOLDINGS CORP - NYSE: $SEM Rounding BottomLast week, SELECT MEDICAL HOLDINGS CORP - NYSE:SEM recaptured its 200 DMA and now finds itself attempting to build on the recent grind into higher ground. In addition, when we examine the action of the Daily chart above, we can also observe that SEM appears to be coming out of a potential rounding bottom.
Furthermore, the stock now finds itself trading above all of its important moving averages 20/50/200 DMA's, which is a positive from a technical viewpoint.
Thus, both investors/traders may want to continue to monitor the action of SEM in the days/weeks ahead as we believe that it may have eyes initially for the open gap near $17.75, yet more likely, we envision a potential move into the $18 - $20 zone and possibly higher.
Nevertheless, SEM displays favorable characteristics across multiple time-frames on the Daily; Weekly; Monthly durations and we suspect that we may just be in the early innings of a move into northern territory.
****NOTE**** SEM will report Earnings on August 1, 2019 before Market Open.
NYSE:SEM - TA6 more days to the next earnings report and share prices are already looking good and ready to take off.
Share prices recently pulled back from around 18.80 highs and bounced at the support trend line marked in green at around 17.55. It has also breached to resistance price points in two trading days.
The last earnings report in Dec 2017 surprised the market by about 300% and share prices made a huge run to the upside. Are we expecting a good earnings report? only time will tell.
The following are major support and resistance to keep a close watch
1. 19.95 - Share prices closed the last session above this point and it needs to continue to hold failure could see prices fall to around 17.65
2. Failure to hold at 17.65 could see prices fall below the support trend line marked in green and could head down to 17.45-17.25
3. Resistance price points are as follows
18.30, 18.70, 18.95, 19.35
SEM- FlaggingSEM flagging here after a good recent move. Could be looking to move higher. Target may be conservative since stock doesn't tend to make large moves, but a half dollar could be a quick trade.
