$HCA · Schwab Network · 2026-11-05

Therefore, you have chosen HCA Healthcare as your first choice today. They are actually maintaining positive momentum. Although it does not exceed one-tenth of a percent, they are still in the positive range , which contradicts the market trend today.

Looking at HCA, one of the companies I wanted to talk about today, we saw a double bottom, and looking at my charts, that happened between June and July. But if you zoom out, you'll find that it's in a long-term upward trend.

I know Rick will look at the charts, but what I like about it is that it's one of the largest hospital operators in the United States . Think about the nature of the work of hospitals, emergency rooms, surgical operations, inpatient care, and the facilities that make all of that possible.

The healthcare sector is experiencing a major boom. There is perhaps a widespread belief that with the Democrats controlling the House and Senate, more money will be poured into healthcare, and Medicare and Medicaid programs as well.

Then there is the natural trend of the baby boomer generation getting older. More of them have been born than at any other time in history. Thus, healthcare has become an integral part of life.

As we get older, this will lead to more and more money being poured into the healthcare system. So, I think that's why I'm interested in this field , and I think it's also why it started its upward trend.

Okay, Rick. Let's take a look at HCA here. I mean, it's a very interesting graph; it did really well during the first part of the year. Then we saw a big sell-off here, but things seem to be recovering now.

He is recovering, but we have stopped at a significant point, at least for me. What we have here is that old peak from a high point during our pullback after we reached these double peaks near 555 or so.

But that peak we reached, which is our second red line at approximately the 511 or 512 level, is where we are today. We have so far failed to achieve a convincing breakthrough above that level.

This is the level at which we closed yesterday as well. It's a rather strange day , as is evident. We can see this situation becoming entrenched and continuing to rise above this level.

But for now, this is still an obstacle that the bulls need to overcome if they want to try again to reach those old highs near 556.

We have a gap level here between 470 and 492, and another notable low point that we established after the last earnings report near 440. Today's price action seems to be keeping us stable above the channel shape that we established here.

So this now stands out as a potential support zone , and it is also the upper limit of our channel.

When we then consider moving averages , our 5-day exponential moving average in dark blue is currently around 492 . It is approaching yesterday's lows , and is also starting to approach the trend line limits here .

The Relative Strength Index (RSI) remains in overbought territory despite the declines we are seeing today. The 70 level usually indicates more strength to come in a market that is trending upwards.

It would be a more bearish signal if we fell below the 70 level on this momentum indicator.

Then, our size profile study shows that we have a node here and here . That is, around 530 to 540 and 495 to 505. We have a few 10-point ranges here where we have seen very heavy trading activity.

But the most densely populated area of all is located here, near approximately 469. That is our point of control. Therefore, this will be a key support area to watch if we start to fall again.

First and foremost, the trend is your friend, and this is one of the few upward trends in the S&P 500 index. So I'm optimistic in the long run, but here's the thing. Although the trend is your friend, as an options trader and investor, you should always think about how to minimize risk. Therefore, I am optimistic in the long term.

I am looking at an execution price of 500 on June 17, 2027. I want to own that. You can get it for around 67; it was trading at that price before the market opened. You might be able to get it for a little cheaper now that everything has dropped slightly.

Then I will hedge myself by selling an option outside the price range at 580. You have to think that if you buy at 500, your breakeven point is 567. If we go a little further and sell the 580 option, we can make $32.

So, our net cost is $35. Therefore, the overall breakeven point is 535. If we rise to 580, we will obviously make a profit, and we will still hold that external or time value.

The other thing I want to pay attention to in this chart while I'm looking here is that I don't want to see the price go back down and break below the 20-day moving average. We just saw the moving average cross above the 200 level, and then it rose above the 20 and 10 levels.

If the stock pulls back, it could bounce back from there , but I don't want to see it break that level.

Good. But looking at today, the stock has lost its positive gains. We are down by about a quarter of a percent, but not as much as we see in many other names that are declining.