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Short This Hospital Stock Stat

Community Health Systems could fall to June low if it breaks support

   

Community Health Systems (NYSE:CYH) — This owner and operator of 131 hospitals, 63 licensed home care agencies and 30 licensed hospice agencies has been downgraded by several research analysts. S&P has a “sell” rating on CYH, saying that the stock was overvalued after advancing 65% this year and trading above their target. They attributed weakness to “political uncertainty that we think could limit prospects for U.S. for-profit hospitals.”

Technically, CYH recently fell from a resistance line at $30-$31. Its next support is at the 200-day moving average at $24, and if it breaks it, then the target would be the June low of $20-$21.

CYH was placed on our list of Stocks to Sell in October at $28.96, and it is a short-sale candidate at the current price. Short-selling is a high-risk, speculative technique, so a stop-loss order should be entered to protect against unlimited losses. Check with your broker for any margin requirements.

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Article printed from InvestorPlace Media, http://investorplace.com/2012/10/trade-of-the-day-community-health-systems-nyse-cyh-3/.

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