After pulling back on pandemic vaccine hopes, Teladoc Health (TDOC) is set to recover.
The pandemic is a “humanitarian disaster,” as noted by CNN. And there’s no slowdown in sight with some warning of new lockdowns, despite hope for a vaccine.
“We are seeing Covid-19 hotspots raging all over the country and right now we have an opportunity to implement targeted measures like universal mask wearing, like making sure that high risk businesses like bars in certain areas are shut down, like instructing the public that we should be avoiding social gatherings of extended family and friends,” said Former Baltimore Health Commissioner Dr. Leana Wen, as quoted by CNN. “But if we don’t do these things now, we’re going to be overwhelming our health systems and then a lock down may be necessary.”
Demand for video health visits will only increase, as folks seek to limit face to face meetings.
“The critical need for social distancing among physicians and patients will drive unprecedented demand for telehealth, which involves the use of communication systems and networks to enable either a synchronous or asynchronous session between the patient and provider,” said Victor Camlek, healthcare principal analyst at Frost & Sullivan.
After pulling back to $170, TDOC has become oversold at bottom of trend. It’s also oversold at its lower Bollinger Band, on MACD, Williams’ %R, and on relative strength (RSI). From here, TDOC could see a near-term bearish gap refill around $208.68.