Select Medical's 15min chart indicates bullish sentiment with KDJ Golden Cross and Marubozu.

Select Medical's 15-minute chart has recently triggered a KDJ Golden Cross and a Bullish Marubozu at 08/18/2022 13:00. This development indicates a shift in momentum towards the upside, suggesting that the stock price may continue to rise. As buyers maintain control of the market, the bullish momentum is likely to persist.

Select Medical Holdings (NYSE: SEM) has recently experienced a notable shift in its stock price momentum, as indicated by a KDJ Golden Cross and a Bullish Marubozu pattern on its 15-minute chart. This development, which occurred on August 18, 2022, at 1:00 PM, suggests that the stock price is poised for further upward movement. The presence of these bullish indicators signals a significant change in market sentiment, with buyers currently dominating the market and driving the stock price higher.

The KDJ Golden Cross, a technical indicator, occurs when the K line crosses above the D line. This crossover is typically seen as a bullish signal, indicating that the stock price is likely to move upward [1]. Additionally, the Bullish Marubozu pattern, characterized by a long body with no shadows, further supports this upward momentum by indicating strong buying pressure [2].

Despite the recent bullish indicators, Select Medical faces some near-term challenges. The company has been under pressure due to regulatory changes and the impact of the Medicare high-cost outlier threshold and the 20% transmittal rule. However, the firm has maintained its Outperform rating, expecting the inpatient rehabilitation (IRF) segment to continue driving growth [3].

Investors should exercise caution and diligent risk management, especially in light of the broader market trends and the upcoming quarterly earnings reports of major companies. The current market volatility, exacerbated by the anticipation of these earnings releases, could present both risks and opportunities.

For investors considering Select Medical, the current market conditions present a mix of risks and opportunities. High-beta investors should consider the following scenarios:
1. Oversold Rebound: If the RSI dips below 30 and the stock finds support at $65.83, this could signal a short-term buying opportunity.
2. Earnings Catalyst: Select Medical's Q1 2026 earnings report on August 7, 2026, could be a pivotal event. A beat on revenue or EPS could spark a rally.
3. Analyst Upgrades: Recent price targets reflect confidence in the company's long-term potential. A sustained move above $75.21 could validate the consensus.

In conclusion, Select Medical's 15-minute chart exhibits bullish momentum, suggesting a potential for further growth. However, near-term earnings pressure and regulatory challenges pose significant challenges. For disciplined investors, a strategic entry point could be a pullback to $65–$66, where the RSI and support levels align with a potential rebound. Position sizing is crucial, with a stop-loss at $62 to balance exposure with risk management.

References:
[1] https://www.ainvest.com/news/inspire-medical-15min-chart-signals-bearish-trend-kdj-death-cross-bearish-marubozu-2508/
[2] https://www.investors.com/news/technology/inspire-medical-systems-stock-inspire-medical-systems-earnings-q2-2025/
[3] https://za.investing.com/news/analyst-ratings/mizuho-lowers-select-medical-holdings-stock-price-target-on-ltch-segment-pressure-93CH-3831403