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Universal Health Services is in break out mode today.  Today’s 3% gain is driving shares past heavy resistance near $115.00.  This key zone has capped the post March peak at multi month highs.  Since UHS’s solid Q2 earnings report:|yseop_template_4-1016945, back on July 27th the stock has been consolidating in a very narrow range below a declining 200D moving average.  This healthy sideways action appears to be giving way to a fresh rally leg as a new week begins. 

We regard UHS as a fairly low risk buy near current levels.  On the downside, a close back below $109.00 would violate last week’s lows indicating overhead 200 day resistance is still in control. 

No positions.