Stock Chart EMS

Posted by downtowntrader | 3/19/2009 11:09:00 PM | 0 comments »

Stock Chart Analysis EMS
Emergency Medical Services Corporation(Public, NYSE:EMS)

Emergency Medical Services Corp. (NYSE:EMS) was one of the few stocks that emerged unscathed by the vicious bear market last fall. It then rallied to a new 52 week high in November, once again showing outstanding relative strength to its peers and the general markets. However, notice that volume increased overall from November through January without any real price advance. This usually signals distribution and it appears that EMS is no exception.

EMS tried to rally off the lower trendline of the triangle it had formed in February, but it fell well short of the prior high. It then broke down under the triangle and quickly traded to a prior pivot low. It has now bounced pretty sharply off that low into a declining 50 day moving average.

I would still classify the overall picture for EMS as neutral due to the fact that it remains in a larger consolidation. However near term, the stock looks like it is struggling with the 200 day moving average and could be headed for a retest of the prior low. If it can't hold that low, then it could be headed all the way into the low 20's.

Good Trading,