01/07/00 Tenet Healthcare (THC)
Points to watch: Tenet
Healthcare spent 1999 in a range between 16-27. The stock has formed
a solid base over the past year, and is now testing the top end of its
range.
Yesterday the stock broke above
resistance at 25.38, a level which had stopped a rally attempt on December
10th and which had acted as support on 8/10/99 and 8/31/99. The
stock closed the day at 25.75. Additional strong resistance exists
at 26.75-27, the 1999 high, set in early January 1999 and touched again on
May 11th.
Long and short term technicals remain
positive. Daily MACD remains on its July 29th buy signal, and daily
OBV has been rising since August. Weekly RSI and stochastics are
rising, and weekly OBV is rising and showed divergence with price during
the 1999 lows.
A buy signal would be given on a break
above the resistance at 27, with the next resistance after a break then
coming at 30.5-31, and 32.5. Support is at 23-23.5.
