SunLink Health Systems Inc. (SSY)

SSY stock forecast: buy or sell

SSY stock outlook

  • SunLink Health Systems stock inched 1.06% to close at $0.95 on the stock market today, after 8 consecutive sessions in red.
  • The price is currently higher than the upper Bollinger band, which usually indicates a near-term correction
  • SunLink Health Systems, Inc., through its subsidiaries, provides healthcare products and services in the southeastern United States. It operates through two segments, Healthcare Services and Pharmacy.
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Disclaimer:
The comments contained in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not have an understanding of the particular situations of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for education purposes only

SSY stock chart overview

Should I buy SunLink Health Systems stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is SSY stock a buy?

In the current situation of SunLink Health Systems there is not any eligible buy setup. This doesn't mean we expect a selloff for SSY in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell SunLink Health Systems stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Much like when we have to buy shares, determining when is appropiate to sell is not a fickle decision, and we must follow our own trading style. When selling, as well as buying, our strategies are very easy to follow but are only applicable for selling stocks in your porfolio, not for selling short SSY stock

As a rule of thumb, you should not mantain a trade that yields higher than expected losses upon purchase. The timing to sell shares always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell SunLink Health Systems stock?

In the current situation of SunLink Health Systems there is not any eligible sell setup, so SunLink Health Systems stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell SunLink Health Systems stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating published in the previous 30 days for SunLink Health Systems

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Technical analysis

SMAs overview

Moving averages are tools for investors to detect stock momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Traders use supports and resistances to spot price points in the stock price action that may behave as barriers, containing the price of shares to move up or down. Supports are levels where the price tends to find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it is likely to continue falling until meeting another support level. On the contrary, resistances are where the price tends to find opposition as it moves up. Again, the price is more liable to "rebound" at this level, and if it finally crosses this level, the price will rise easily until it finds the next resistance

The current resistance levels are:

  • R1: $0.95 (0% above)
  • R2: $0.96 (1.05% above)
  • R3: $0.97 (2.11% above)
  • The current supports are:

  • S1: $0.94 (-1.05% below)
  • S2: $0.93 (-2.11% below)
  • S3: $0.92 (-3.16% below)
  • Bollinger bands

    So-called Bollinger bands are a widespread technique designed by John Bollinger. The Bollinger Bands are bands that fluctuate around a centralmoving average, varying the distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Price readings both above or below the Bollinger Bands mean that the price has followed a strong trend that has led to extreme highs or lows. For this case, the price is beyond the upper band, and that should mean a short-term adjustment (at least) until it is under the band

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that gauges price changes to detect when the share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI moves between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    When the relative strength (RSI) stays for so long below 70 and above 30, without any indication of overvaluation and undervaluation, the indicator becomes of little use, and we find ourselves in one of these cases.

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    Earnings and financials

    SunLink Health Systems Inc. (SSY) posted adjusted EPS for the fiscal first-quarter that matched analysts' expectations. Quarterly EPS was $0.00 per share instead of $0.00. The company said turnover for Q1 was $12.7 million aligned with analysts' estimates as well.

    In comparison, the EPS for the same quarter last year was $-0.05, so posted EPS means a gain of 100%. Turnover merely moved on an annualized basis in the first-quarter, from $12.4M to $12.7M last quarter.

    SSY will host the earnings call next September. Wall Street analysts expect a per-share earnings of %s of $0.00, that is a 0% than previous quarter. If you hold or you are planning to buy SSY shares, you must be on alert as financial reporting day usually has a very high volatility, and price can soar and sink with very low liquidity and not honouring your buy or stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

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