Small Cap Network Blog

If you were in the trade, then you’re lovin’ today’s ride…and you’ll already know that Tenet Healthcare (THC) jumped 7% today on an upgrade from Lehman Brothers. They finally got on board…after the stock gained 70.9% from October’s low close. With today’s pop, we’re up about 40% on the stock pick.

Though it’s nice to get a little help, this changes nothing about what we’re seeing on the chart. This stock is volatile, but there’s been more bullish volatility than bearish volatility. THC shares have been bouncing around in a wide range, and we think they’re going to keep doing so until our objective of $7.67 is met.

In fact, today’s turn-around may have been jump-started by a sharp pullback in early June….a pullback that took the stock right back to the support line we discussed in our last mention of Tenet. Take a look at the chart - the blue support and resistance lines in particular. Now project where the upper line will be by the time it’s intercepted again. It looks like it will be pretty darn close to $7.67.

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