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,
Joey
for more analysis, check out downtowntrader.com
Stock Chart Analysis CMC
Commercial Metals Company (Public, NYSE:CMC)
Industrial Metals stocks have been on a tear lately as inflation is starting to move to the forefront again. It looks like some of these names are under accumulation with stocks like X, NUE, and WLT ripping higher daily. CMC is one that may be flying a little under the radar, but could be ready to move to center stage. It's been building a base that resembles a reverse head and shoulders. The weekly chart may also be hinting at a correction that has run it's course. Often these patterns may be setting up bull traps, but it's never known until after the fact. Speculating is a game of odds and the best we can do is find setups where the reward outweighs the risk we are taking. If CMC clears this base, it could very well head to new highs, and if it fails, the risk shouldn't be too great from this spot on the chart.
Good Trading,
Joey
for more analysis, check out downtowntrader.com
Stock Chart Analysis ARGN
Amerigon Incorporated (Public, NASDAQ:ARGN)
Often the best time to enter a trend is on the first retrace after the breakout or breakdown. In ARGN's case, it broke down from a lengthy base in early April, and then retraced to test out the break down area a few days ago. The test failed miserably and it looks like ARGN may follow through on another leg down. It's interesting to note that ARGN has been notably weak in a time where the majority of stocks have been moving higher. While I prefer to not jump in after a stock has dropped 6% in a day, it does look like the trend is resuming and I will look for any near term retraces as a possible shorting opportunity.
Good Trading,
Joey
for more analysis, check out downtowntrader.com
