
Morning Trend | Encompass Health tests support again, is a short-term watershed coming for the healthcare sector?

Encompass Health (EHC.US) has recently faced repeated pressure, testing key support levels once again during yesterday's trading session. After the recent decline in the healthcare sector, EHC has reached a critical moment for the main players to decide whether to "defend and counterattack." The atmosphere is subtle, with people frequently calling out "it's almost time, just take another look." In the short term, the $60-62 range for EHC is widely defined by the community as a defensive stronghold. Each time it drops to this level, large orders noticeably increase, and there are occasional sudden movements in intraday trading, suggesting that the main players may have already made preparations. However, the intensity of the decline has not significantly weakened, and the short-term direction still needs further confirmation. Community traders are divided; some believe it is just a matter of time before the main players lift the stock, while others are concerned about the pressure from healthcare policies leading to passive declines. There is currently no clear signal indicating when the main players will take action. It is recommended to pay attention to the combination of "not falling further, suddenly rising," as a breakout above $63 with increased volume would signal the strongest follow-up trend. In terms of operations, if there are consecutive large orders of proactive buying in intraday trading without significant follow-through, a short-term attempt to simulate positions can be made, adding to the position once signals are confirmed; otherwise, it is advisable to wait to avoid false breakouts that could lure in buyers. The healthcare sector is generally weak, but it is often the first to ignite during sector rotations. If EHC maintains its support, there may be an opportunity for a "knife-edge" play on the right side. After all, if it cannot hold, it would just be a stop-loss. The dividing line between bulls and bears is close at hand, and once the main players take action, there will definitely be a short-term trading opportunity. It is recommended to focus on unusual movements from the main players and changes in volume; when the healthcare dividing line arrives, the first to lift it will belong to those who are quick and observant
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