Five Star Quality Care Inc. Primed to Move Higher on Strong Chart Technicals

Five Star Quality Care, Inc. (FVE) is a national healthcare and senior living provider, offers the highest quality of care and service. Five Star has two major operating divisions: Five Star Senior Living and Five Star Rehabilitation Services.

The Five Star Senior Living division includes more than 260 Independent Living and Assisted Living facilities, Skilled Health Care facilities, and Continuing Care Retirement Communities. Through its Rehabilitation Services division, Five Star operates rehabilitation hospitals and outpatient health rehabilitation clinics. Five Star is headquartered in Newton, Massachusetts.

Bullish Fundamentals and Chart Factors: Gap Fill upwards coming off of  oversold/over negative reaction on recent earnings. Company has become grossly undervalued with a market cap of $247.92M, trading at roughly 9x price to earnings. Obama Care future implementation should favor companies such as Five Star as it seeks to subsidize this segment of healthcare.

The FVE chart is looking bullish, as it is has entered the gap from $4.97 to about $5.82.  The money flow is trending up and so is the relative strength index. It could start to fill that gap if it gains some momentum.

Above is the 60 minute 20 day chart. The money flow is charged here and accumulation is picking up. Nice continuation pattern shown in the price action

Above is the 60 minute 20 day chart. The money flow is charged here and accumulation is picking up. Nice continuation pattern shown in the price action

My short term price target opinion of $5.50-$5.75.

Long: FVE

 

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