Express Scripts Is Near a Key Resistance Area

Published on Tuesday, 19 June 2012 06:20 Written by TradersHuddle Wire

New York, June 19th (TradersHuddle.com) - Shares of Express Scripts, Inc. (NASDAQ:ESRX) are trading very close to calculated resistance at $54.79. The stock ended the trading session at just $53.79, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $50.31 and by the resistance level at $54.79; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Express Scripts. However, as the stock pulls back towards $50.31 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $54.79 then traders will get an opportunity to enter the stock as it moves to a higher range.