Technically Speaking: BioScrip Inc (BIOS), Hertz Global Holdings, Inc (HTZ) And CVS Health Corp (CVS)

BioScrip Inc (NASDAQ:BIOS)

BioScrip, BIOS, is a leading national provider of infusion and home care management solutions. BIOS partners with physicians, hospitals, nursing facilities and pharmaceutical manufacturers to provide patients post-acute care services.

On November 8th, BioScrip Inc (NASDAQ:BIOS) reported a quarter that was met unenthusiastically by investors, sending the shares down by over 47%. Although the earnings were not what the market wanted to hear, from a trading perspective, an opportunity has emerged.

First, the RSI(14) is trading at a very low 12.18 at the close of trading on Tuesday. This is well within my signal target of a reading lower than 25. The MACD is also trading below the base line at a reading of -.062. With both levels well within my technical signal parameters, BIOS is likely to offer a quick snap-back opportunity as the stock corrects to a more normalized level.

At the end of Tuesday’s trading, momentum of the MACD indicated a move back toward the base line, showing signs of reversing a downtrend that had been in place for the last thirty minutes of trading. The RSI traded down to its lowest level of the day by closing, offering a weak buy signal on its own. But, bringing in the MACDH is where I found the signal.

With the RSI sitting at extremely oversold levels and with the MACDH showing signs of reversing the downtrend, I anticipate that Wednesday will offer a strong trading opportunity. However, there is no need to execute the trade on the opening bell.

While I expect that BioScrip Inc (NASDAQ:BIOS) will provide the buy signal in the mid morning session, I expect BIOS to trade lower at the open and then offer investors an opportunity to purchase shares at the $1.15 level. The RSI should follow the stock lower to a value of roughly 10 and the MACD will signal additional downside pressure. However, after the first low is taken out, I anticipate a correction to the upside, with a target of $1. 60 as my exit point, providing a trough to peak gain of 39%. Trade duration for these signals to occur is 72 hours. Remember, trade-in and trade-out. Meet the objective and settle the trade.

Hertz Global Holdings, Inc (NYSE:HTZ)

Hertz Global had a roller coaster day on Tuesday, trading as low as $17.00 a share before ultimately settling at $27.70 a share. Hertz Global Holdings, Inc (NYSE:HTZ) reported unsettling quarterly results and investors responded violently , sending shares sharply lower before recovering on news that Carl Icahn has doubled his stake in HTZ, purchasing shares at an average cost of $23.83 per share. While news typically trumps all, special circumstances also deserve some attention. In this case, the technicals, coupled with the Icahn news offers an enticing opportunity to capitalize on a confused market. Earnings bad, Icahn good.

At the close, the RSI stood at 19.55, with the MACD weakening into the close, settling right at the base line for the day. The two indicators are now in sync to set a new trend once the final trades and early morning momentum traders move out of the way. Technicals point to a slightly lower open with a quick reversal to the upside, starting an uptrend from what I believe will be the $27.40 level. My exit for this trade is set at $31.00 a share, representing a short term gain of 12.73%.

Hertz Global Holdings, Inc (NYSE:HTZ) may demonstrate some battleground tendencies, with shorts and longs battling it out for position. With the Icahn stake, the technical pattern may be repeatable as the two sides of the trade battle it out for the overall sentiment and I would continue to rely on an RSI of 19 and a MACDH at or below the 0 base line to remain interested. Stay disciplined, this trade is designed for a 12%-15% return, not 30%.

CVS Health Corp (NYSE:CVS)

CVS Health Corp (NYSE:CVS) got crushed on Tuesday, after reporting increased profit but offered weak guidance for 2017. Shares got stung by over 11% on the day, recovering from the intraday low of $69.30 to close at $73.53, down $9.83 on the day.

From a technical perspective, CVS will offer an opportunity, but investors can use this stock as a test of patience and discipline. I anticipate that CVS Health Corp (NYSE:CVS) will continue lower in the morning session before stabilizing just above $72.00 per share.

The RSI closed at 20.91 and the MACDH shot a big candle downward at the close, demonstrating some strong selling by exhausted longs at the end of the session. Based on the pattern at the close, my analysis indicates an opportunity to open a position at $$71.00 a share with an exit point set at $77.00 per share, a gain of 8.45%. I have a 72 hour duration for this trade. If the stock does not trade down to $71.00, I believe the rally will be short lived until it does touch that level.