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April 06, 2023
Pre-open trade suggests a higher market open today with yesterday's bullish sentiment adding to the risk-on mood. After closing Tuesday at $21.46, Fresenius Medical Care closed at $21.69 yesterday after climbing to $21.73 and dropping back down.
United States Initial Jobless Claims data will be released today at 12:30 UTC, with an expected decline to 200,000.
Nevertheless, highly important Crude Oil Inventories data from United States beat analyst expectations of -2.33 million with a reading of -3.74 million.
At the same time, United States ISM Non-Manufacturing PMI (Mar) released yesterday at 14:00 UTC with a figure of 51.2, while the previous figure was 55.1. United States ADP Nonfarm Employment Change (Mar) came out at 145,000, while a consensus of analysts was expecting 200,000.
Trend-following investors would be interested to note that investors are seeking long positions as Fresenius Medical Care AG & Co. KGaA price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. Momentum evaluation shows that the Relative Strength Index indicates Fresenius Medical Care is currently 'overbought' which suggests new gains will be harder to obtain. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $22, thereby suggesting that Fresenius Medical Care is becoming overvalued. Visual analysis of Fresenius Medical Care's chart shows that Fresenius Medical Care is 8 cents away from testing key resistance at $21.77. Peaking above this level could inspire market bulls and open the path to further gains.
Overall, while Fresenius Medical Care has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
A look at other health care stocks also showed bullish price action as Johnson & Johnson traded at $165.61 after closing yesterday's trading day at $158.49 (up 4.49%). Merck traded at $111.91 after closing yesterday's trading day at $108.83 (up 2.83%). UnitedHealth gained 3.24%, as it traded at $509.23.
Furthermore, the market is looking at United States Non Farm Payrolls projected to come out at 239,000 — worse than previous data of 311,000; data will be released tomorrow at 12:30 UTC. United States Initial Jobless Claims projected to decline to 200,000 while previous data was 198,000; data will be released today at 12:30 UTC.
Also worthy of note, United States Unemployment Rate is expected tomorrow at 12:30 UTC.
The stock has been trending positively for about a month. This year has been a bright one for the US-German healthcare company after trading as low as $12.81 and going on to appreciate by 35.14% year to date.
