1Life Healthcare Inc. (NASDAQ: ONEM) engages in the provision of healthcare membership services. It offers walk-in immunizations and lab services, behavioral health, women’s health, men’s health, LGBTQ+ care, pediatrics, sports medicine, lifestyle, and wellbeing programs. ONEM has a market cap of 4.023 Billion.

ONEM’s mission is to transform health care through a human-centered, technology-powered model. The company wants to provide members with better health, better care, and lower costs. Six out of nine analysts have the stock rated Strong Buy or Buy. The average analysts price target is $29.1.

The company has an EPS growth estimate of 33.8% for next year and a sales growth estimate of 11.4%. ONEM has recently announced the pricing of an upsized underwritten public offering of 8,300,000 shares of its common stock by certain selling stockholders at a public offering price of $31.00 per share.

Take a look at the 1-year chart of ONEM below with the added notations:

Chart of ONEM provided by TradingView 

For the 3 months following its IPO, ONEM managed to form an important level of resistance at $28 (blue), which the stock eventually broke. Once above $28, that same level provided support for ONEM’s pullback. In addition, the stock now seems to have formed a key level of resistance around $36 (red).

The Tale of the Tape: ONEM has key levels at $28 and $36. A trader could enter a long position on a pullback down to $28, or a break above $36, with a stop placed under the level of entry. 

ONEM has been hovering above its 50-day moving average since April 17th.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT

@cmtstockcoach

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ONEM shares were trading at $31.98 per share on Monday morning, up $0.08 (+0.25%). Year-to-date, ONEM has declined %, versus a -5.66% rise in the benchmark S&P 500 index during the same period.

About the Author: Christian Tharp

Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...

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