The healthcare sector is one of the strongest sectors in the market, but Gentiva (GTIV) has lagged and failed to keep pace. Even though the stock is in a medium-term downtrend, this decline could be a correction. Notice how the decline formed a falling wedge and retraced 62%. Also notice how the stock firmed after the sharp decline in early November and bucked market selling pressure the last three days. Key resistance is set at 12 and a breakout here would reverse the falling wedge.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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