Tenet Healthcare - Bulls taking control?

Published on Friday, 27 August 2010 18:12 Written by TradersHuddle Staff

New York, August 27th (TradersHuddle.com) - Shares of Tenet Healthcare Corporation (NYSE:THC) ended the trading session higher by $0.12 or 3.01% from its previous close. Tenet's price action developed what can be considered a reversal pattern in the form of a tweezer bottom, which is a candlestick pattern that is usually formed at the end of a downtrend. The tweezer bottom is considered a reversal pattern, so traders will need to monitor the the price action for confirmation.

Tenet Healthcare Corporation (NYSE:THC) owns or operates general hospitals and related health care facilities serving communities in the United States. The Dallas, Texas company operates rehabilitation hospitals, specialty hospitals, long-term care facilities, psychiatric facilities, and medical office buildings near its general hospitals, as well as ancillary health care businesses.

Traders looking for an entry in Tenet Healthcare can use the tweezers as a good reference point to establish the long position, as the pattern provides defined risk by giving a good reference point for support.

Traders are always looking for tweezer bottoms as they give an entry with a small risk defined, they are a leading indicator that provides an alert for a trend reversal or stabilization. The tweezers imply that bears or sellers were not able to push the stock lower, therefore providing the opportunity to look for a bounce. Below an example of Tweezer Bottom reversal patterns: