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

Stock Chart Analysis S

Sprint Nextel Corporation(Public, NYSE:S)

Here is a look at Sprint Nextel Corporation via a reader request. S is at an interesting point here, as it has pulled back to obvious support and is oversold enough that a bounce here could be expected. S had a prior line of resistance around $4.50 that should act as support if tested. It also has a gap that hasn't been filled near $4.70 that should also act as a layer of support. Beyond these horizontal levels of importance, S is also sitting on a rising trendline that has defined the existing rally just as the slow stochastics indicator is becoming oversold. These are all signs that S could get a bounce off these levels.

However, S is also showing many signs that the current rally off the November lows is getting long in the tooth. The RSI indicator has not confirmed the recent highs with similar highs in the indicator, and the MACD histogram is even worse. It is making new lows, which implies that downside momentum is picking up speed. The $6.00 area is a key resistance level, and may not be easy to break.

In my opinion, the key levels to watch are the gap support and $6. Much depends on a traders timeframe, but breaking under the rising trendline and gap should change the trend to sideways at a minimum. A move over $6 has to be treated as bullish.


Good Trading,

Joey

Stock Chart Analysis KIM

Kimco Realty Corporation(Public, NYSE:KIM)

I just posted a chart to chart.ly on a cup and handle forming on Vornado Realty Trust (NYSE:VNO) and mentioned how some other REIT's are showing similar patterns. Below is a chart for Kimco Realty Corporation (NYSE:KIM) which is also showing a cup and hande base.

It's interesting how the REIT's have been heavily shorted and yet are resisting a breakdown. KIM formed a nice rounding base after a brutal 5 month decline that took it from the $30's to the $6's. More recently, it has been trading sideways, thus building the handle portion of the cup and handle base. The official neckline stands at just about where KIM closed today, so KIM could be just emerging from this base. The measured target of a breakout would take KIM near $17 and its declining 200-day moving average. Definitely worth keeping an eye on.


Good Trading,

Joey

Stock Chart Analysis WAT

Waters Corporation(Public, NYSE:WAT)

On nights like tonight, most of the charts I find look fantastic, if you are already in. Most are too extended for a reasonable swing entry unless you drill down to intra-day charts and aggressively trade them. It's very important to analysis your risk first, and then worry about the reward. Many stocks look like they could easily tack on more gains, but the with the rise today, a reasonable stop may be too far away. However, there are still some charts that allow for a reasonable stop and could present opportunities if the markets follow through over the next few days. One such chart I ran across tonight was WAT.

WAT cleared a pretty long and choppy base in late April on heavy volume. While the base left much to be desired, WAT has been consolidating nicely since the breakout. It never came close to retracing into the breakway gap, and has been trading in a tight and narrow range for a few weeks. It closed back above the 200-day moving average today, and has found good support on the last two trips to the $43 area. The Bollinger Bands have shrunk to the narrowest range on the chart and WAT could see a nice expansion in volatility soon. While the breakout could move in either direction, I am leaning to an upside breakout due to the bullish factors noted above.



Good Trading,

Joey