A healthcare provider is set up for a big move higher, according to the charts
Daily chart bullish breakout A key component of the healthcare comeback over the last several months has been healthcare providers. The IHF ETF rallied 42% from its March low to its early July high before consolidating over the last few months. Thus, it’s not surprising that some healthcare provider stocks have been performing well, too. HCA , which is a holding within IHF, still is trying to capitalize on a bullish pattern that has formed over the last several months. With the stock knocking on the door of key resistance near the 430 zone, a breakout would complete a very clear bullish cup-and-handle pattern from a trading perspective. That would produce a 514-upside target. If this were a trade, we would look to limit losses near the 396 zone, which is right around the handle portion of the cup-and-handle pattern. The other interesting part about this chart is what preceded the current setup. HCA endured a sizable topping formation that took shape beginning in November 2025. That pattern eventually broke down this spring, and the stock went on to hit its downside target. Thus, we already have evidence that a sizable technical formation has been leveraged, and the hope now is that this bullish version eventually produces a similar reaction in the opposite direction. The longer-term view Zooming out, the story gets even more interesting on the weekly chart using a log scale. The bounce over the last few months took place right at a key uptrend line extending from the 2022 low. HCA previously bounced from that line twice and came close to testing it again in early 2025. In other words, this longer-term trendline has remained an important technical reference point for several years. Also highlighted on the chart are instances when the 13-week moving average in green overtook the 26-week moving average in blue. These are lagging indicators, but when a crossover like this occurs on a weekly chart, it shows that longer-term momentum has been turning higher. In HCA’s case, similar crossovers have preceded several substantial advances: from late 2022 into the mid-2023 peak, again beginning in early 2024 before the stock peaked in the fourth quarter, and then again in early 2025, which eventually helped take HCA to an all-time high in early 2026. If that pattern persists and the longer-term trend remains intact, another 13-week/26-week bullish crossover could help support additional upside follow-through. Relative strength turning higher Lastly, this relative chart compares HCA with the XLV healthcare ETF. Since the COVID low, the HCA/XLV ratio has fallen to a weekly oversold condition now five times. Each time the ratio subsequently emerged from oversold and turned higher, HCA went on to outperform its sector for a number of months. Those oversold readings did not always pinpoint the exact relative low, but they came very close. The ratio reached an oversold condition again just a few months ago and since has been attempting to turn higher. This suggests HCA could still be in the early stages of a comeback on both an absolute and relative basis. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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