Time to offload Concord Medical Services Holdings Ltd. ADR (NYSE:CCM)?

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Shares of Concord Medical Services Holdings Limited (NYSE:CCM) last traded at $3.59. (NYSE:CCM) performance year to date is -21.87%. The 200 day simple moving average is -19.44%. The 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall long-term trend. The price level in a market that coincides with the 200 SMA is recognized as a major support when price is above the 200 SMA or resistance when price is below the 200 SMA level.

Concord Medical Services Holdings Limited operates a large network of radiotherapy and diagnostic imaging centers in China. Most of the centers in their network are established through long-term lease and management services arrangements entered into with their hospital partners. Under these arrangements, Concord Medical receives a contracted percentage of each center’s revenue net of specified operating expenses. Each center is located on the premises of their hospital partners and is typically equipped with a primary unit of advanced radiotherapy or diagnostic imaging equipment, such as a linear accelerator, head gamma knife system, body gamma knife system, PET-CT scanner or MRI scanner.

Concord Medical Services Holdings Limited (NYSE:CCM) has been in the news for all the right reasons. Recently, Concord Medical Services Holdings Limited (NYSE:CCM) announced on May 19, 2017, that its subsidiary, Meizhong Jiahe Hospital Management Corp. Ltd, previously known as CMS Hospital Management Co., Ltd, jointly with Guofu Huimei Investment Management Limited Partnership, has proposed to acquire Shanghai ProMed Cancer Center, LLC by purchasing existing, and subscribing for newly released, registered capital of ProMed. Post the acquisition, MHM will hold 31.64% of the equity interest in ProMed Cancer Center. Register with us now for your free membership and blog access at:

The Barchart Technical Opinion rating is a 100% Sell and ranks in the Top 1% of all short term signal directions. Longer term, the trend strength is in the Top 1%. Long term indicators fully support a continuation of the trend.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 3.99 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 4.46 is also higher than the current trading price depicting a bearish trend overall..

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 16.23 suggesting a bearish price action.

Concord Medical Services Holdings Limited (NYSE:CCM) is all set to announce its earnings on May 22. As per Zack’s analyst ratings, Concord Medical Services Holdings Limited (NYSE:CCM) currently has an average brokerage rating of 3.7. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NYSE:CCM) is $4.2 with a high of $4.2 and a low of $4.2.

As such, while we believe Concord Medical Services Holdings Limited (NYSE:CCM) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

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