Richard asked if I’d take a look at the Chemed (CHE) chart.
Here’s an interesting company with an interesting technical profile. Chemed (CHE) operates in two segments, hospice services and drain cleaning. They provide palliative care through a network of physicians, nurses, and health care aides, and they own the Roto-Rooter company.
The stock price is up over 41% in the last 52 weeks and, coincidentally, it has a 41% short interest. On Thursday the company reported earnings that the street seemed to like, and it broke $100.00 for the first time. There was attempt to make new highs on Friday against the tidal effect of the sinking broader market, but it failed and the close was about equal to Thursday’s close.
There are two speculative long trading options: after a pullback to recent resistance-turned-support levels and the formation of a reversal candle, or buying a break to new highs. Both are speculative and require close protective stops, but either could initiate a covering rally.