Recent political turmoil regarding a series of White House executive orders has caused healthcare stocks to fall over the last few days. MPW is specifically affected since Trump's cancelled CSR payments can cause serious financial problems for hospitals. It's possible the stock will break below its 100-day EMA, however given the continued higher lows since November 2017, the downside risk is quite low.
State AGs are already looking to file lawsuits against the recent Trump executive orders which could slow down the White House's agenda in ceasing the CSR payments. However, if there are signs that the lawsuits will fail you may see MPW head for the downside. Also, a bipartisan deal among lawmakers can make sure the CSR payments continue which is bullish for MPW.
At the height of the Republican Obamacare repeal effort in March, MPW had reached as low as $12.00, a key fibonacci level. However, since then the stock has been steadily climbing. Even on news of the signs of failure of the lawsuits against the White House, it is highly unlikely MPW will reach as low as $12.00. A bounce off the area of $12.75 and $12.50 seems more likely. Otherwise we may just see MPW bounce off its 100-day EMA and continue upwards, perhaps on speculation that Trump's executive orders being rendered impotent in the courts.
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