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Possible Bullish Inside Day Candle Pattern Detected for Community Health Systems (NYSE:CYH)

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Community Health Systems (NYSE:CYH) based on the price action in the company's shares. Today's price range of $12.26 and $12.68 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of Community Health Systems may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Community Health Systems Inc. owns, leases, and operates hospitals in multiple states. The Hospitals services include emergency room services, general surgery, critical care, internal medicine, obstetrics and diagnostic services. Community Health also owns interests in physicians, physician practices, imaging centers, home health agencies and ambulatory surgery centers.

In the past 52 weeks, Community Health Systems share prices have been bracketed by a low of $11.81 and a high of $65.00 and are now at $12.49, 6% above that low price. The 200-day and 50-day moving averages have moved 2.78% lower and 0.20% higher over the past week, respectively.

There is potential upside of 240.5% for shares of Community Health Systems based on a current price of $12.49 and an average consensus analyst price target of $42.52. The stock should find initial resistance at its 50-day moving average (MA) of $17.62 and further resistance at its 200-day MA of $31.40.

SmarTrend recommended that its subscribers protect gains by selling shares of Community Health Systems on May 3rd, 2016 by issuing a Downtrend alert when the shares were trading at $14.14. Since that call, shares of Community Health Systems have fallen 14.6%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish inside day candle Community Health Systems

Ticker(s): CYH