The charts of prescription drug company Express Scripts (NASDAQ:ESRX), have undergone a lot of activity lately after earnings reports and a merge with Medco Health (NYSE:MHS), among other things. This brief article looks to study the technical aspects of Express Scripts to give us a guide as to where it will go next.
ExpressScripts hit a 52-week low in mid-November 2012 around the $50 mark and has been gradually climbing since. For the next few months, a pair of upward trend lines surround the chart, a strong indicator of a continued uptrend. An attempt to break support in April 2013 was counteracted by a resistance breakage, letting ESRX stock prices enter a new range, which it has been in since. The newly established trend lines are much tighter together than the previous ones, with a decelerated climb, but stock prices seem to still be inching upward. Not enough time has past to be sure if the trend will resume or if ESRX prices will plummet--only time will tell.
If you are currently holding shares of ExpressScripts, I would suggest placing a failsafe on it at around $60.50, because anything below that is likely a sign of a reversing trend against the desires of shareholders. Now is not a good time to buy shares because it is technically unpredictable at least for a few more weeks. Perhaps look at other companies in its sector as it is by no means an outcast as far as sector movement and trends go, other than a fairly high beta of 1.45, indicating the stock is fairly volatile and a bad investment for very conservative investors.
Disclosure: I am long ESRX.
Additional disclosure: I may withhold my shares within the next 4 weeks depending on the company's activity and stock price fluctuation.