Stock Chart ESRX

Posted by downtowntrader | 5/08/2008 07:42:00 PM | 0 comments »

Stock Chart Analysis ESRX

Express Scripts, Inc. (Public, NASDAQ:ESRX)

As many of you know, I love finding stocks that are completing a pullback from a strong uptrend. ESRX fits the bill and has a few things going for it here. First, notice the clear and orderly pullback from all time highs shown as a declining channel from December through March. Also notice that from January through April, ESRX was quietly forming a base from which to resume the prior uptrend. The base resembles a reverse head and shoulders and has a clear breakout area near 68. It subsequently broke through the $68 level and came back for a classic retest of support. It now looks like it is turning back higher, and this could be the run that carries it to new highs. I worry sometimes when the signals are so perfect, because they could be setting up a bull trap, but this setup looks pretty good. They also have two Health Care conferences coming up and they could help bring institutional money into the stock.

Good Trading,


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