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Sector Watch - Healthcare

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Healthcare (HMO)
Neutral
Sector trading above its…
20-day Moving Average: YES
50-day Moving Average: YES
100-day Moving Average: YES

Sentiment:Analyst rankings on the sector indicate that roughly 50 percent are “buys” or higher. Short interest on the sector is among the lowest 12 percent of readings during the past year, indicating that there is some optimism in the current trading landscape.

Outlook: The Morgan Stanley Healthcare Payors Index (HMO – 1,772.7) continues to struggle with long-term resistance in the 1,780 region, while it currently tests support at its 50-week moving average. The added signs of optimism mentioned above suggest that selling may be prolonged due to the “crowd” having been bullish toward these stocks. However, the index’s 80-week moving average is moving into the region and could help to boost HMO through overhead resistance. The index has been supported by trendline on more than one occasion during the couple of years.


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