Health Management Associates, Inc. (NYSE: HMA) — This company owns and operates general acute-care hospitals in the southeastern United States.
The stock bottomed in November 2009 at under $1. In May 2009, it executed a very bullish golden cross and rose from $5 to its high in October at over $8.
Upside volume has been accumulating since January, and in mid-March, HMA broke from a triangle, making a new high at over $9.
Following the new high, the stock consolidated for a month before jumping to another new high at $9.80 on May 13, and then another pullback — this time to $8.26.
Yesterday, HMA broke through both its 20-day and 50-day moving averages on a buy signal from the stochastic.
The trading target for HMA is $10. S&P has a 12-month target of $10 and rates HMA a “four-star buy.”
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