As we are approaching election date I would like to start pointing out some companies that will be huuuuuugely affected by the results.
Although fundamental analysis is extremely crucial for long term investment decisions we can't bypass the technical part in order to minimize risks and choose better entry points.
Let's take a look at Community Health Systems - NYSE:CYH.
The Big Picture
Mrs Clinton is an advocate of ObamaCare and she promised to push "socialized medicine" through out the whole America.
Community Health has 200 hospitals in 29 states and 13 of them are not covered under Affordable Care Act.
Being a billion dollar company there is a great potential for $CYH to expand its business if Clinton manages to expand Obamacare.
Bad That Is Actually Good
The company has not been doing well and is 60% down YTD. In addition to that it has 75% debt-to-assets ratio.
$CYH is trading near its record historical lows where it seemed to find a strong support at $10 level.
The moving averages are about to line up except for 200 ema ($16.81 as of today) which is way higher than the stock price.
After 3 debates between Trump and Clinton we see more polls are leaning towards Democrat's candidate victory.
It is a good idea to put $CYH on watch list both for short term traders and a long term investor( more analysis is recommended).
Since the company has lost 75% of its value in the last year Clinton's win would be a good catalyst for a rebound given the stock found its bottom.
We would like to see $CYH trade above its 9,20 and 50 day moving averages where it will have a clear window up to $12 and then $13.30 level - that is 14% and 26% gain respectively.
If it does not hold up the current price and goes for a pullback we would be watching it near $10 area as the safest entry point.
Industry - Healthcare Facilities
Sector - Healthcare
Disclosure: I/we have no positions in any stocks mentioned.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.