Spire Healthcare: Continued Recovery From Ultra Oversold State

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Spire Healthcare really has been one of the stocks from hell so far this year, perhaps joining in with the likes of Merlin Entertainment and Provident Financial in terms of being a situation where even though the stock is at bargain basement levels, it still does not look comfortable for the bulls. At least with Spire, as far as one knows Neil Woodford is not involved. But you never know.

Looking at the daily chart configuration it can be seen how there has been a rebound from an ultra low RSI level at 13/100 when the stock was in the 230p’s in September. For October we saw bullish divergence with the share price still going down towards 220p, but the RSI trace slowly rising.

The technical indication now is that provided there is no break back below initial October resistance at 234p one would be looking for a minimum move to the 50 day moving average at 276p over the next couple of weeks.

Above the 50 day line would hint that perhaps the old M&A speculation regarding this company, Mediclinic and HCA could be back on track, if only because the recent black swan events here clobbering the stock price, and making would be predators reconsider their position.

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Disclaimer

Zakmir.com is a purely journalistic website – Zak Mir is a member of the NUJ. There is no intention here of providing financial advice and absolutely no interest in speculating in the companies mentioned. It is  recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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