Is Express Scripts Expecting Resistance Soon?

Published on Friday, 15 June 2012 05:56 Written by TradersHuddle Wire

New York, June 15th (TradersHuddle.com) - Express Scripts, Inc. (NASDAQ:ESRX) ended the trading session at $54.23, near its 50 day moving average set at $54.58. Express Scripts price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.

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.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $50.31 and resistance at $53.54. These levels will be closely monitored, as they provide great insight into the latest price dynamics.

If traders want to establish a position in Express Scripts, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.