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Possible Bullish Inside Day Candle Pattern Detected for HealthSouth (NYSE:HLS)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in HealthSouth (NYSE:HLS) based on the price action in the company's shares. Yesterday's price range of $37.73 and $38.41 is within the prior day'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 HealthSouth may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

HEALTHSOUTH Corporation provides inpatient rehabilitative healthcare services. The Company operates inpatient rehabilitation hospitals, long-term acute care hospitals, outpatient and rehabilitation satellites, and home health agencies. HEALTHSOUTH provides treatment on both an inpatient and outpatient basis.

Over the past year, HealthSouth has traded in a range of $30.26 to $48.37 and closed yesterday at $38.04, 26% above that low. Over the past week, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has advanced 1.8%.

Potential upside of 14.8% exists for HealthSouth, based on a current level of $38.04 and analysts' average consensus price target of $43.67. The stock should find initial support at its 200-day moving average (MA) of $37.54 and further support at its 50-day MA of $36.88.

SmarTrend recommended that subscribers consider buying shares of HealthSouth on February 25th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $35.28. Since that recommendation, shares of HealthSouth have risen 6.8%. We continue to monitor HLS for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bullish am inside day candle healthsouth

Ticker(s): HLS