Trading Idea - Is Express Scripts close to Resistance?

Published on Wednesday, 18 January 2012 08:04 Written by TradersHuddle Staff

New York, January 18th (TradersHuddle.com) - Shares of Express Scripts, Inc. (NASDAQ:ESRX) are trading very close to calculated resistance at $50.93 with the current price action closing at just $49.83 placing the stock near levels that make it difficult to buy.

Express Scripts, Inc. (NASDAQ:ESRX) is a full service pharmacy benefit management and specialty managed care company. The Company serves managed care organizations, insurance carriers, third party administrators, employers, and union-sponsored benefit plans.

Express Scripts current stock range is defined by current calculated support defined at $47.96 and by the resistance level at $50.93, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Express Scripts, as the stock is well above support, however, as the stock pulls back towards $47.96 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $50.93 then traders will get an opportunity to enter Express Scripts stock by establishing a position as the stock moves to a higher range.