HCA Healthcare Jumps 6.2% in Three Days as Technicals Signal Bullish Reversal

HCA Healthcare (HCA) concluded the most recent session with a 3.07% gain, marking its third consecutive daily advance and bringing its cumulative three-day return to 6.20%. This upward momentum reflects renewed buying interest following a period of consolidation.
Candlestick Theory
Recent price action reveals a significant bullish reversal pattern. The three consecutive white candles—particularly the latest session’s long-bodied candle closing near its high ($355.06) after testing support at $342.71—suggest strong accumulation. Key resistance is established at the July 22 high of $374.18, while the July 25 swing low of $334.32 provides immediate support. A breakout above the $355.49 recent high would signal continuation potential.
Moving Average Theory
The 50-day moving average (currently near $358) is trending flat, indicating near-term equilibrium. The 100-day MA (approximately $350) and 200-day MA (near $340) maintain upward slopes, reinforcing the long-term bullish trend. The current price ($355.06) is challenging the 50-day MA from below—a decisive close above this level may catalyze short-term momentum. The ascending 200-day MA has consistently acted as dynamic support during pullbacks.
MACD & KDJ Indicators
The MACD histogram has shifted to positive territory following a bullish crossover, signaling strengthening momentum. Concurrently, the KDJ indicator shows %K crossing above %D from oversold levels (<30) three sessions ago. Both oscillators now point upward, though the KDJ’s exit from oversold conditions carries higher conviction for near-term upside than the MACD, which remains below its zero line. This divergence suggests the reversal is still in its early phase but gaining traction.
Bollinger Bands
Price rebounded sharply from the lower Bollinger Band ($340–$335 zone) during the July 25–28 consolidation. The latest close near the upper band ($355) coincides with expanding bandwidth, indicating increasing volatility favoring bulls. A sustained move above the 20-period moving average (mid-band, now ~$348) would confirm the breakout. The bands’ expansion after prior contraction supports continued directional movement.
Volume-Price Relationship
Volume surged by 26% during the latest session compared to the prior two days, validating the bullish breakout. This contrasts with the high-volume sell-off on July 25 (3.18 million shares), which likely represented capitulation. Accumulation is evident as advances occur on rising volume, while the preceding decline saw higher volume during down days—a sign distribution has been absorbed. Such volume confirmation enhances the sustainability probability of the current rally.
Relative Strength Index (RSI)
The 14-day RSI rebounded sharply from oversold territory (recently at 28) to the current 54. This recovery reflects rapid momentum shift but remains below overbought thresholds, allowing room for further upside. The RSI’s bullish divergence—forming a higher low while price recorded a lower low on July 25—provided an early reversal warning. Sustained readings above 50 would reinforce bullish control.
Fibonacci Retracement
Applying Fibonacci levels to the April 30 low ($306.30) and July 22 high ($374.18), the recent pullback found strong support near the 38.2% retracement level at $340.50 (actual low: $340.54 on July 28). The current rebound is now testing the 23.6% resistance at $355.20, aligning with today’s high of $355.49. A successful breach would expose the 0% retracement level at $374.18. The 50% retracement at $340.24 and 61.8% at $334.90 remain critical supports.
Confluence & Divergence Notes
Multiple indicators converge at $340–$335, including the 200-day MA, 50% Fibonacci level, and volume-supported price lows, creating a high-probability reversal zone. The MACD-KDJ bullish alignment and volume-confirmed breakout strengthen the short-term upside case. A key divergence occurred when RSI signaled accumulation during the July decline while price made lower lows—a classic reversal precursor. The primary risk is resistance confluence near $355 (Fibonacci 23.6%, recent high, and 50-day MA), requiring decisive volume-backed clearance to confirm trend resumption. Probabilistically, the weight of evidence supports further upside toward $374 absent a breakdown below $340.