Stock Chart Analysis ESRX
Express Scripts, Inc.(Public, NASDAQ:ESRX)
ESRX is one of the stocks on my watch list for the upcoming week as it is showing some bullish signs. The chart for ESRX is an interesting one, as it highlights what can happen when one side gets caught by surprise. In this case it looks like the bears were fooled by a breakdown from a base in March. The breakdown was steep and came on rising volume which added to the legitamacy of the breakdown. After a weak bounce attempt, ESRX began to rollover in late March which is about when the bears may of been caught in a trap. ESRX bounced very sharply off the new lows, and after resting a few days gapped higher on good volume and continued the move the following day. It has since been consolidating the breakout and never came back to test that strong candle let alone the gap below it. These are bullish signs, and there could still be some trapped bears in here. The larger consolidation looks like a flag setting up, and could lead to a measured move higher if it can clear the flag. Looking more closely, ESRX is bouncing off the 20-day moving average and had huge volume on the heels of pricing a secondary at $61. This level may act as a near term floor, and could support the stock moving forward.
Good Trading,
Joey
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