Boston, MA 10\/04\/2013 (wallstreetpr) –\u00a0HCP, Inc. (NYSE:HCP) (Closed: $39.82, Down: 4.67%) opened flat on Thursday but kept falling for the rest of the session hitting new lows all the way down. The price action broke the previous 7 day consolidation and created a very bearish long range candle. The volume surged at 9 million against an average of 3 million only.<\/p>\n
The indicators are sending very bearish signals. The fall from the high of $56.06 made in May soon brought the weekly RSI down below the 50 level. In the last 3 years, this is the first time the RSI has totally failed to go above 50 and stayed below for such a long period, which is a bear market characteristic. The weekly MACD too is languishing in the negative territory and hitting new lows every week.<\/p>\n
But the most dangerous signal comes from the daily RSI which is showing a Negative Reversal, totally different from Negative Divergence. When the price hit the swing high of $44.51 in September, the daily RSI made a higher high than the one made when the price had hit the high of $47.45 in July. That means, the momentum this time was higher but it still failed to take the price to make a higher high. That failure is called a Negative Reversal and has immense bearish implications.<\/p>\n
In 2007 & 2008, the stock was rejected from the level of $42.11 – $42.16 and dropped to $14.26. It successfully breached this resistance zone in July 2012 and rallied to $56.06 but returned in August to the same level. Currently it is firmly trading below $46 which is the sign of a failed rally. It is also testing the lower boundary of the major channel that constitute the entire rally from the 2008 bottom of $14.26.<\/p>\n
Investors could exit the stock totally if it sustains below $39.36, the Thursday low.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 10\/04\/2013 (wallstreetpr) –\u00a0HCP, Inc. (NYSE:HCP) (Closed: $39.82, Down: 4.67%) opened flat on Thursday but kept falling for the rest of the session hitting […]<\/p>\n","protected":false},"author":6,"featured_media":9567,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3264,3262,3263],"stock_ticker":[],"class_list":["post-9566","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-hcp-inc","tag-hcp-inc-nysehcp","tag-nysehcp","entry"],"acf":[],"yoast_head":"\n