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: https://www.zacks.com/stock/news/1016945/universal-health-services-uhs-q2-earnings-and-revenues-beat-estimates?cid=CS-MKTWTCH-HL-tale_of_the_tape|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.